This is £21,774 more than the average house price in the UK and an increase of nearly £4,000 from the 2023 survey.
Key insights from SHBI:
79% of people considering moving (renting or buying) within the next five years want a smart home. They are prepared to pay a 7.7% premium over the average UK house price (around £21,774). 70% of survey respondents want smart technology to improve energy efficiency and 63% want to save money. A further 75% want technology that improves security. Demographics are changing: 48% of Gen Z want a smart home, but the number of over-65s looking for a smart home is growing and this trend is expected to continue.
London, UK – 27 June 2024 – Samsung Electronics Co., Ltd. Today, Samsung released the latest data for its Smart Home Buyer Index 2024 (SHBI)(1).
The SHBI found that 79% of people surveyed said they want a smart home, indicating the strength of the market opportunity for developers and housebuilders(2). What's more, they are willing to pay an average premium of 7.7% over the average UK house price of £282,776 (equivalent to approximately £21,774)(3). It's clear that this movement is accelerating, with the smart home market predicted to show a compound annual growth rate of 11.66% between 2024 and 2028, generating revenues of approximately £8.6 billion in 2024 alone(4).
Financial concerns were a top concern among those looking at smart homes. In addition to 63% hoping the technology will help them save money, nearly 70% of respondents cited energy efficiency as their primary motivation for using smart technology, with 84% hoping to save on utility bills. Interest in energy-efficient devices and appliances is supported by Samsung's search volume analysis, which showed that searches for smart energy appliances increased nearly 60% from April 2023 to April 2024, led by air-source heat pumps. Search volume for air-source heat pumps increased 173% year-over-year, surpassing searches for smart meters.
The focus on energy efficiency should come as good news for the industry as it prepares for the UK government's current Future Homes and Buildings Standard, which requires new homes constructed from 2025 onwards to emit 75% to 80% less carbon emissions than homes built under the previous regulations. The standard comes into force in 2025, and housebuilders and developers who incorporate the right future-proof technologies can help those looking for energy efficiency and cost savings in the future, especially as new technologies become available.
Mark Seaman, head of Samsung's B2B integrated offerings team, commented: “Samsung's Smart Home Buyer Index uncovers consumers' key priorities for smart homes. We are a key partner to developers and homebuilders, helping them deliver innovative, smart living solutions. By providing insights such as this, Samsung can help the industry keep up with changing consumer demands. This data shows that understanding the importance consumers place on their smart homes can increase value in rental and sales prices, helping to improve return on investment for homebuilders and developers.”
But consumers' finances shouldn't be the only consideration when designing a home. After energy efficiency and cost savings, home security is the top reason for considering integrating smart technology, with 75% of people wanting connected security features like doorbells and cameras to protect their home and give them peace of mind. Building connectivity into the home provides a secure network that can be accessed from phones and other devices, enhancing security and a sense of control.
SHBI also looks at trends across age groups. Smart homes aren't just for young people: there is an increasing number of people aged 65 and over who want to take advantage of smart technology in their homes. It's therefore important that the industry doesn't just consider the technology needs of younger generations, but prepares to cater for the needs of all age groups. This is particularly noteworthy given that the UK's elderly population (5) is expected to grow to around 26% by 2066 (6).
The UK construction industry is expected to see a 21% increase in new work output over the five years from 2024 to 2029(7). Those responsible for new build projects might want to heed SHBI's observation that technology is the main reason people want to move to new property. The survey found that 80% of people are attracted to new build properties, with 36% citing the amount of smart technology that comes pre-fitted as the main reason. A further 53% believe that new developments are designed for modern living and will likely include technology features, and 57% cite energy efficiency as a motivator for moving to new property. When asked about new build properties specifically, 40% of people aged 65 and over believe that pre-fitted technology would be an incentive to move into new build property, again highlighting the importance of integrating technology into all types of housing, including retirement properties.
Mark continues, “It's important that homes support ongoing technological developments and are able to adapt as smart devices and appliances evolve. Instead of just focusing on short-term technology offerings, the emphasis should be on ensuring homes are future-ready. It's clear that today's consumers are increasingly aware of the potential of AI, with 61% of survey respondents expecting it to become more important in the coming years, even if they're not using it now.”
“The UK housing market has been under huge scrutiny in recent years, with the rising cost of living, rising inflation and volatile energy prices also remaining top challenges for many people. There is a real opportunity for developers and housebuilders to work with the right partners, integrate technology from the start and take a digital-first approach to build the homes of tomorrow today.”
Click here to download the Smart Home Buyers Index
(1) The SHBI details key consumer trends regarding smart technology in the home. The index is based on a custom survey of over 1,000 consumers who are considering a residential relocation (buying or renting) over the next five years and an analysis of search volume for smart devices and home appliances from April 2023 to April 2024.
(2) It is defined as “a home equipped with lighting, heating, and electronic devices that can be remotely controlled using a smartphone or computer.”
(3) Taken from the UK House Price Index, May 2024 – https://landregistry.data.gov.uk/app/ukhpi/
(4) Quoted from Statista Market Insights: https://www.statista.com/outlook/dmo/smart-home/united-kingdom
(5) Quoted from the Aging Improvement Center's “Current Status of Aging 2023-2024”
(6) Data from the UK Office for National Statistics, Longevity (ons.gov.uk)
(7) BCIS Construction Forecast – Construction Industry Forecast | BCIS