Mortgage applications for home energy upgrades jump 59% amid rising energy uncertainty

The number of mortgage applications for home improvement and energy-efficiency renovations rose sharply in March, increasing 59 percent compared with February, according to mortgage advisory firm De Hypotheker on Friday.

The surge comes as energy prices remain under pressure due to the war in the Middle East. De Hypotheker said geopolitical tensions are fueling uncertainty about energy markets, encouraging more Dutch households to invest in making their homes more energy efficient. Housing market tightness is also a factor, with many homeowners choosing not to move and instead using built-up home equity to improve their current properties.

Research by De Hypotheker shows that reducing energy costs is the primary motivation for homeowners to renovate and improve energy performance. Since the energy crisis that followed Russia’s invasion of Ukraine in 2022, households have become increasingly aware of energy consumption and the financial impact of rapid price increases. In 2024, mortgage applications for home improvement rose 22 percent year-on-year, followed by a 17 percent increase in 2025.

Last year, the strongest growth in renovation-related applications was seen among homeowners aged 25 to 35, up 28 percent, and among those aged 55 and older, up 20 percent.

Energy-efficient homes reduce dependence on external energy sources by consuming less energy. De Hypotheker said such homes also provide greater living comfort and increase property values.

Buyers are reportedly often willing to pay more for homes with future-proof energy features, and energy labels play a significant role in that decision. In some cases, buyers of properties with less favorable energy labels can borrow additional funds specifically to finance energy upgrades.

Mark de Rijke, commercial director at De Hypotheker, said: “The past few years have shown many Dutch people how vulnerable they are to sharp fluctuations in energy prices. The conflict in the Middle East once again makes clear how dependent we are on energy sources from unstable regions. That fits into a development we have been seeing for a longer time.”

He added, “In addition, more than half of homeowners experience barriers to making their homes more sustainable. They report having limited knowledge of financing options and say that changing regulations creates uncertainty.”