Neil Budd from IMI Heatmiser explains how smart technology is now an integral component of achieving comfort at home for occupants.
The UK housebuilding market is embroiled in arguably its largest period of upheaval since the post-war building boom. Alongside the introduction of key legislation such as the Future Homes Standard, and an industry grappling with how to meet tough government housebuilding targets, there are changing demands from house buyers on expectations of what technology homes should have as standard.
These forces are having a huge impact on how homes are designed, where they are built, and what they need to achieve as buildings, from energy efficiency to quality of life, throughout the life span of their use. For housebuilders and property developers, smart technology adoption within the fit out of units is no longer a perk for the most exclusive of properties. Smart technology is now expected as standard by a population that is at the critical ‘early majority’ stage of the technology adoption bell curve, which describes how people react to, adopt and accept new innovations in technology.
For example, by 2027 it is expected that the smart home market will achieve 50% market penetration with more than 15 million homes being ‘smart homes,’ with the overall market valued at £13.2bn by 2028.
Now homeowners can tangibly see how smart technology – often controlled by smart phones – can offer increased control, convenience and efficiency they want and expect to see the technology included in their new build properties.
During the ongoing cost of living crisis, where homeowners at every socio-economic level need to closely manage their utility bills, the use of smart thermostats is a tried and tested way to incorporate smart technology into a home design. Research from NIQ Consumer Intelligence shows that smart thermostats are now among the top 10 smart tech devices consumers use in their home, alongside smart plugs, smart speakers and smart lighting.
Smart room thermostats give homeowners precise comfort control while helping to cut energy use. Available to housebuilders in both wired and wireless options, the products are able to connect seamlessly via RF to a hub for reliable and responsive performance throughout the home, working with all major heat sources including heat pumps, electric systems and boilers. It is also possible to connect smart home thermostats with leading smart home platforms such as Alexa, Google Home, HomeKit and IFTTT, or operates as a standalone system through a dedicated app.
Government policy is driving the industry towards delivering more energy efficient, easier to manage heating systems that can adapt to the changing climate and not rely upon a single source of heating that UK homes have become accustomed to since the post war house building boom.
The Government’s recent decision to back the Warm Homes Plan in the spending review will commit £13.2bn in the coming years to upgrade the standard of heat sources and heat conservation in existing housing stock, with the ultimate objective of bringing household energy bills down by £300 by 2030.
Crucially, the Warm Homes Plan will allow for homes to be heated by different sources, from solar panels to heat pumps and other low carbon heating solutions.
This will have to drive manufacturers and housebuilders to work more closely together to help deliver climate control systems that place heating management at the fingertips of every home occupant, while making it easier for technology agnostic users to manage the warmth of their homes through a single interface.
There are examples of smart technology being placed at the forefront of housing design and delivery. Green energy supplier Octopus Energy has pledged to build 100,000 Zero Bills homes by 2030. These homes are fully powered by green technology including solar panels, heat pumps and batteries with a promise to deliver zero bills for utilities to the homeowner.
So, what is the pay-off for the small housebuilder and property developer for this upheaval in build specification and buyer requirements? Firstly, there is a higher demand, as a significant percentage of people looking to move want homes with smart technology. This is being driven by demographic changes that cannot be reversed. There are two key trends in motion here: younger generations who are digital natives now reaching property owning age, and older generations that are increasingly relying on technology in their home to assist with their day to day living.
Secondly, buyers are willing to pay a premium. The 2024 Smart Home Buyers Index by Samsung has found that buyers will pay an extra 7.7% on the average UK house price of £282,776 for homes with smart technology as standard – an additional value of £21,774 that buyers place on a future proof property.
The UK market has reached a point not seen since the post-war building boom. Government legislation across all aspects of building design, from the Future Homes Standard, the Warm Homes Plan and Planning and Infrastructure Bill to the reinstatement of house building targets is in lockstep with what people want their property to be in a new age of modern living expectations.
Neil Budd is head of residential sales (UK and Ireland) at IMI Heatmiser