Buyers and Renters willing to pay almosts 8% more for smart homes

Published: 02/07/2024 By Litchfields

According to studies, eight out of 10 people planning to move in the next five years want a smart house and are willing to pay roughly 8% extra for it. Home movers across the country, whether renting or purchasing, are willing to spend a 7.7% premium on the average UK property price - approximately £21,774 - if it includes the technology they need.

Why? Seven out of 10 people want to increase their energy efficiency with smart technology, and a similar amount (63%) believe that having a 'smart’ home will save money. According to research, smart homes are estimated to increase at a compound annual rate of 11.66% between 2024 and 2028, generating sales of almost £8.6 billion in 2024 alone. It has also been shown that individuals looking for a smart home were more concerned about their finances. In addition to the 63% who expected cost savings from technology, about 70% of respondents cited energy efficiency as a key motivator for implementing smart technology, with 84% wanting to save money on their energy bills.

Another reason is increased value. According to the statistics, recognising the importance that customers have on smart homes would raise the value of rental and sale prices, resulting in a higher return on investment for house builders and developers. It is vital that homes can support continual technological advancement and adapt to the ever-changing world of smart gadgets and appliances, using a digital-first approach to designing tomorrow's houses today.

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