Smart home technology (SHT) is fast becoming a desirable and valuable feature inside UK homes. In 2024, 39% of households use SHT and this figure is expected to rise to 50.2% by 2050. These technologies include smart thermostats, meters and lighting and are designed to increase the energy efficiency of properties and reduce energy bills. If you invest in this tech, you could add thousands of pounds to the value of your home and secure a faster sale.
Why smart home technology increases property value
The initial cost of investing in SHT means that some homeowners are reluctant to part with their cash. But several studies have shown that it could be a valuable investment. In 2022, insurance firm Admiral Money surveyed 2000 UK homeowners and found that 76% would be more likely to buy a property if it had energy saving measures, including SHT. An average of 24% also said they’d be willing to pay more money for a property with an EPC (energy efficiency) rating of C or above. Another 67% said they look for the EPC rating when buying a home. This rating can be improved significantly by installing SHT inside your property.
Which smart home technologies increases value the most
Back in 2013, a report by the Department of Energy and Climate Change estimated that making energy saving improvements to your property could increase its value by 14% on average - and up to 38% in some parts of England. Admiral’s survey, meanwhile, compared the sale price of homes with different energy-saving features across 13 UK cities against properties that didn’t have them in the same area. It revealed that several energy efficient improvements added significant value, including solar panels (25%), insulation (22%), heat pumps (10%), smart thermostats (7%) and triple glazing (2%).
The right technology for your home
Smart thermostats
One of the most popular new technologies for homes are smart thermostats. These use advanced technology to learn your temperature preferences and adjust the heating and cooling of your home via an array of sensors, algorithms and machine learning. Together, they combine to detect occupancy, humidity, temperature and other environmental factors. Statistics published by UK energy companies estimate savings of 31% on heating costs and £311 per year on energy bills, meaning they could be a valuable asset to boost the energy efficiency and value of your home.
Smart lighting
Lighting accounts for roughly 15% of household energy bills, meaning there is huge potential to cut your bills and add value to your home with smart lighting. This technology enables you to control the lighting inside your home remotely via your smartphone. This involves using an app that connects to a hub connected to your internet router inside your home. As long as the wi-fi is working in your home, you can control the lighting remotely. The app automatically tells you if any lights are still on, meaning you can save money by turning them off wherever you are. It also uses sensors to automatically adjust the amount of brightness based on natural light availability. Using smart LED lighting rather than traditional light bulbs will also result in significant savings. Research shows that it costs around £25 to run an old 60-watt incandescent light bulb for 10 hours a day for a year, compared to £1.50 per year for an LED bulb.
Smart meters
By the end of 2023, 60% of UK homes had switched to smart meters. This technology automatically tracks your gas and electricity usage in real time so you can adjust your usage accordingly. The meter automatically sends your usage to your energy supplier so that you’re only charged for the energy you use, rather than an estimated amount. Households that use smart meters will save an average of 3% on their electricity bill and 2.2% on their gas as a result of behavioural changes driven by the installation of smart meters. With an estimated two thirds of house hunters now looking for homes with green technology installed, meters, which are free to install, are an easy win for homeowners looking to sell their homes and appeal to sustainably-minded buyers.
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