Home build cost 'to rise' under new energy rules
TOUGH new energy ratings are expected to raise the construction costs of residential properties by up to 4pc, according to estate agency Lisney.
The 'nearly zero-energy buildings' regulations mean that new homes will be rated A2, as opposed to the A3 rating that had been imposed on such domestic dwellings.
Compared with properties built in 2005, the standards mean that newly built homes will be 70pc more energy efficient and emit 70pc less carbon dioxide.
The regulations came into force on all new dwellings with construction starting from November 1.
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In a report published yesterday, Lisney predicted that the new requirements would add between 1pc and 4pc to the costs of home construction.
The increased costs come as the country remains far short of building enough residential units to cope with demand.
Lisney has also forecast that residential prices will remain relatively steady in 2020, with increases of up to 5pc only in selected areas.
"A trend in increased enquiries from UK-based buyers for the upper end of the market is expected to continue into 2020," it said.
A report last week from Daft said that residential prices fell last year for the first time since 2012, declining by 1.2pc.
Lisney has also forecast a buoyant office market and private rented sector this year.
Investment turnover last year hit €4.7bn, it said, up 18pc on 2018. That does not include the €1.34bn sale of Green Reit, however.
It added that the tech industry would continue to dominate office take-up this year.
The sector took half of all new accommodation in 2019 and that trend will be mirrored in 2020, said Lisney.