The Impact of Smart Home Technology on UK Property Values

UK buyers are willing to pay an average premium of roughly 7.7% — or about £21,774 — for a home that already has smart technology built in, according to the Samsung Smart Home Buyers Index 2024. That figure is not a niche curiosity. It tells you that a significant portion of the market now sees integrated tech as a feature worth paying for, not just a nice extra. Over the years I’ve been covering UK property, I’ve watched this shift from novelty to expectation, and the data now backs up what agents have been telling me anecdotally: smart homes sell faster and for more money.

7.7%
Average price premium buyers will pay for a smart home
Samsung

79%
Of movers want their next home to be smart
Samsung

£5.8bn
UK smart home market value in 2026
Statista

42%
Of UK households own at least one smart device
Ofcom

But not every gadget adds value. Some upgrades are removable, invisible, or too niche to register with a typical buyer. The difference between a feature that boosts your sale price and one that just sits in a drawer is often about integration, permanence, and energy savings. Here’s what you actually need to know.

Buyers pay a measurable premium
A 7.7% premium on the average UK house price means roughly £21,774 extra — comparable to a kitchen renovation.

Not all tech adds value
Removable gadgets like smart plugs rarely move the needle. Built-in, visible, energy-saving tech does.

Energy savings are the real driver
A smart thermostat saves the average household £265 per year — a figure buyers can calculate and value.

Location matters
Smart home adoption is highest in London (54%) and the South East (49%), where buyer expectations are strongest.

What “Smart Home” Actually Means for Your Property’s Value

The term gets thrown around a lot, but the market has settled on a practical definition. A smart home, in the context of property value, is one where connected devices are integrated into the fabric of the building — not just sitting on a shelf. That distinction matters because buyers evaluating a property’s true cost are looking for features they won’t have to install or maintain themselves.

Smart Home (Property Context)
A home with permanently installed, connected devices that can be controlled remotely or automated — typically including heating, lighting, security, and energy management systems that are built into the property rather than plugged in as standalone gadgets.

What I tend to notice is that the properties generating the strongest early interest are the ones where the tech is demonstrable during a viewing. A smart thermostat showing the current temperature on a wall display, app-controlled lighting that adjusts as you walk through a room, a video doorbell that the agent can show you on their phone — these create a tangible impression. Between two otherwise identical homes, the one with visible smart integration is typically the easier sell.

Why Estate Agents Are Now Treating Smart Tech as a Differentiator

Estate agents are actively highlighting smart features in listings because they attract a different quality of enquiry. According to industry reports, properties with well-presented smart technology tend to generate stronger early interest, which matters enormously in a market where the first few weeks of listing carry disproportionate weight. Buyers who are actively searching for connected homes tend to be motivated, financially capable, and often transact faster — partly because they have done their research.

The demographic data backs this up. Among homeowners, 51% own at least one smart device, compared to 31% of renters. And in households earning above £50,000 annually, that figure jumps to 68%. These are the buyers who can afford to pay a premium and who expect a certain level of infrastructure. For the cohort aged 25–44 — the highest adoption bracket at 61% — the absence of smart infrastructure can actually feel like a negative rather than a neutral factor.

Consider a typical scenario: two three-bedroom semi-detached homes in the same street, both listed at £350,000. One has a smart thermostat, app-controlled lighting, and a video doorbell. The other has standard heating and a traditional doorbell. The smart home doesn’t just justify a higher asking price — it generates more viewings in the first week, which creates competition. In a slow market, that early momentum can be the difference between selling in four weeks and sitting for four months.

The £265-a-Year Advantage
A smart thermostat saves the average UK household £265 annually on heating bills. Over five years, that’s £1,325 in savings — a figure buyers can factor into their offer. Energy-linked tech consistently delivers the highest ROI because it pays for itself.

My own view is that the smart home premium is not evenly distributed. It’s strongest in London and the South East, where adoption rates are highest and buyer expectations are most developed. If you’re selling in the North East or Northern Ireland, where adoption sits at 31% and 28% respectively, the premium may be smaller. But even there, the trend is moving in one direction: as property prices continue to climb, any feature that helps your home stand out becomes more valuable.

Where Homeowners Get Smart Home Upgrades Wrong

The most common mistake I see is treating smart home upgrades like consumer electronics rather than property improvements. A smart plug that you remove when you move is not a property feature — it’s a gadget. The upgrades that actually add value share three characteristics: they are permanent, they are visible during viewings, and they offer a calculable benefit.

Installing Removable Gadgets Instead of Integrated Systems

Smart plugs, individual smart bulbs, and standalone speakers are easy to install, but they’re also easy to remove. Buyers know this. When they walk into a home and see a handful of smart plugs in the sockets, they don’t factor that into their offer because they assume it’s coming with you. The technologies that score highest for property value impact are built into the fabric of the property — smart thermostats wired into the heating system, motorised blinds, integrated security cameras, and switchable smart glass that replaces standard windows.

Ignoring the Energy Efficiency Angle

This is the biggest missed opportunity. The UK smart home market is projected to reach £9.2 billion by 2030, and the strongest growth segment is smart energy management — driven by the energy price cap environment. A smart thermostat that saves £265 per year is not just a convenience; it’s a financial argument. Buyers can calculate the payback period. If you’re spending £200 on a smart thermostat and it saves £265 a year, that’s a return in under a year. Yet many homeowners install smart lighting or speakers and skip the heating system entirely.

Overlooking the Security Layer

Smart security cameras are now in 19% of UK households, and smart locks in 6%. These numbers are growing fast. A video doorbell or a smart lock is one of the few upgrades that a buyer can see working during a viewing — you can show them the live feed on your phone, or demonstrate the keyless entry. Security is a growing concern for UK buyers, and visible security tech signals that the property is well-maintained and modern.

→ Scroll right to see all columns

Source: Smart Home UK statistics
Smart DeviceUK Household PenetrationProperty Value Impact
Smart Thermostat22%High — energy savings are calculable
Smart Security Camera19%Medium-High — visible and reassuring
Smart Lighting17%Medium — visible but removable
Smart Lock6%Medium — growing in importance

Failing to Market What You Have

This one is frustrating because it costs nothing to fix. Estate agents report that many sellers with smart homes simply don’t tell them. If you have a smart thermostat, a video doorbell, or integrated lighting, make sure your agent knows and includes it in the listing. Agents are increasingly advising sellers to highlight tech specifications in the same way they would highlight a new kitchen or a recently replaced boiler. A badly maintained property with a smart thermostat is still a badly maintained property — but between two comparable properties, the one with smart integration is typically the easier sell.

Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.

How to Choose Smart Home Upgrades That Actually Add Value

The goal is not to turn your home into a tech showroom. It’s to make targeted, permanent upgrades that a buyer will recognise as valuable. Here are the actions that deliver the best return.

Start With the Heating System

A smart thermostat is the single highest-ROI smart home upgrade for UK homeowners. It saves £265 per year on average, it’s permanently installed, and it’s visible during viewings. The installation is straightforward — most models replace your existing thermostat and connect to your boiler via a wireless receiver. You can control it from your phone, set schedules, and show the buyer the energy savings data. If you only do one thing, do this.

  • 1
    Check your boiler compatibility
    Most modern combi boilers work with smart thermostats. Check the manufacturer’s list or ask an installer.

  • 2
    Choose a thermostat with app control and scheduling
    Look for models that let you set heating schedules, control remotely, and view energy usage history.

  • 3
    Install or hire a professional
    Many smart thermostats are DIY-friendly, but if you’re unsure, a heating engineer can install it in under an hour.

  • 4
    Save the energy data for your listing
    The app will show your savings over time. Screenshot this and share it with your estate agent.

Add Visible Security That Stays With the Property

A video doorbell and a smart security camera are two of the most visible upgrades you can make. They’re permanently mounted, they work during viewings, and they signal that the property is secure. For landlords especially, visible security can reduce insurance premiums and attract better tenants. A video doorbell like the Arlo Essential Wireless Video Doorbell offers 1080p video, night vision, and two-way audio — all visible from a buyer’s phone during a viewing. Smart security cameras are now in 19% of UK households, and that number is climbing fast.

Consider Smart Glass for High-End Properties

Switchable smart glass (PDLC technology) is one of the few upgrades that simultaneously improves privacy, energy performance, aesthetics, and buyer perception. It can reduce energy consumption by up to 30% through infrared blocking and optimised natural light use. This is not a cheap upgrade — it’s typically £300–£600 per square metre installed — but for properties in the upper price brackets, it’s a genuine differentiator. Estate agents report that properties with smart glass generate stronger early interest, particularly in urban markets where privacy is at a premium.

Don’t Forget the Basics: Smart Locks and Leak Detectors

Smart locks are still relatively rare — only 6% of UK households have one — but they’re growing fast. A smart lock like the Nuki Smart Lock Pro retrofits onto your existing door and allows keyless entry, remote access, and auto-lock. It’s visible during viewings and signals modern security. Similarly, a Wi-Fi water leak detector like the X-Sense model can prevent thousands of pounds in damage and is a cheap, permanent addition that buyers appreciate. These are the kind of small upgrades that, when combined, create an impression of a well-maintained, modern home.

Frequently Asked Questions

Will a smart home upgrade increase my council tax band?
No. Council tax bands are based on the property’s value as of 1991 in England and Scotland (2003 in Wales). Smart home upgrades do not trigger a revaluation unless you make structural changes that significantly increase the floor area.
Do I need to declare smart devices when selling?
You should list them in the property details, but you’re not legally required to. However, if a buyer asks whether the smart thermostat stays, and you say yes, it becomes part of the sale contract. Be clear about what’s included.
Can smart home features affect my home insurance?
Yes, and usually in your favour. Smart security cameras, alarms, and leak detectors can reduce premiums. Some insurers offer discounts of 5–15% for homes with monitored smart security systems. Always tell your insurer about permanent installations.
What if the buyer doesn’t want smart features?
Most smart thermostats and locks can be used in manual mode, so they function like standard devices. A buyer who doesn’t want the smart functionality can simply ignore the app. The energy savings still apply regardless of how the device is controlled.
Is the 7.7% premium realistic for all property types?
No. The premium is strongest in London and the South East, where 54% and 49% of households already own smart devices. In regions with lower adoption, the premium is likely smaller. The 7.7% figure is an average across the UK, not a guarantee for every property.

Sources and Further Reading

The rise of co-living in the UK — Explores how shared housing models are adapting to changing buyer expectations, including tech integration.

Navigating UK planning regulations for property development — Covers the planning rules that apply when installing permanent smart home features like smart glass or integrated security systems.

Smart home value increase in the UK. Smart Pro Glass, 2024.

UK smart home statistics 2026. Smart Home UK, 2026.

The rise of home tech: smart homes and the future of UK property. Estate Agent Power, 2025.

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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