Articles and whitepapers

Opportunities for Smart Technology in the Self-build Market (5/11/2007)

By Jason Orme, Homebuilding & Renovating

The self-build community is a broad church comprising not just the private individual who builds a unique one-off home for their family, or renovates an existing house. More and more, private developers operating at the top end of the market immerse themselves in this sector because it is the best way for them to get a hold on the innovations and features that the discerning homebuyer requires. Increasingly, there is a blurring of the lines between self-built homes and their counterparts at the top end of the commercial market. Interestingly, around 25% of visitors to The Smart Home Show at The National Homebuilding & Renovating Show class themselves as trade visitors. When you dig deeper, it transpires that around half of this 'trade audience' falls into the specific roles of property developer and builder.

The self-build sector is largely responsible, as early adopters, for the introduction into the wider housebuilding world of ideas such as open-plan living, double height spaces, breakfast kitchens and set-piece staircases, as well, particularly, as features such as underfloor heating, eco products such as condensing boilers and heat pumps and, of course, smart home technology.

Self-builders build in all architectural styles to meet planning requirements, but increasingly view interior spaces as contemporary.

Self-builder profile

Self-builders come in all shapes and sizes. Contrary to the popular view, they aren't all rich and middle-aged; many young couples see self-build as a great way to jump up the housing ladder, while many retired couples dream of building their own, often amazingly modern, smaller home once their kids have flown the nest. They are driven by a desire, of course, to benefit financially out of their project, but more than that, they take the opportunity to build from scratch as a chance to create something truly individual to their own unique needs, incorporating many features that they simply wouldn't find in houses they could otherwise afford on the traditional market. They are willing to invest in products that will benefit their lifestyle much more than regular developers who need to see a return on every pound spent.

Self-build market size

There are somewhere in the region of 15-20,000 self-builds in the UK each year - the only viable measure is the figure for VAT returns, which is believed to account for around half of the total number (many self-builders put the returns through their usual accounts), so it is notoriously difficult to estimate. In addition, there are an estimated 300,000 significant renovators (i.e. householders carrying out such significant renovations to their own home that they have to apply for planning permission), many of whom cross over into the self-build market as many of the same issues apply. Taking into account the number of commercial developers who tap into this market too, it's not difficult to see why it is enjoying sustained growth year on year.

Interest in smart home technology

Although self-builders have known about smart home technology in its contemporary sense for the best part of a decade, in the last couple of years, as prices have begun to fall and choice increased, there has been a significant rise in interest. At the Homebuilding & Renovating show at the NEC, Birmingham, over 52% of visitors expressed an interest in smart home technology. The most significant hurdle to further take up is, in the market's opinion, the high capital cost of the features - which is why the industry media advises its readers to, at the very least, install hard wiring during first fix stage for a minimal upfront cost, allowing flexibility for add-ons in the future.

Ideas such as underfloor heating, open plan living and, of course, smart home technology have all fed through to the developer market.

Self-builders are an incredibly independent bunch - which is, of course, what drives them in the first place - and they are obsessed by researching and understanding the features of their new home. How much they understand the technology largely depends on the approach of the project. Many are happy to leave the 'complicated details' to their builder; while those who are managing the project themselves are much more likely to feel the need to understand every element of what's going into their new home. Smart home technology, as one of the newest and perhaps most jargon-laden concepts, faces the problem of explaining how it can benefit the self-builder's lifestyle while at the same time not coming across as too complicated to understand.

While around 5% of self-builders completely build their own home with their own hands, the vast majority will either contract the whole job out to a main contractor, or manage the project themselves, employing subcontractors as necessary. The recent introduction of Part P of the Building Regulations has only further served to ensure that wiring is no longer the domain of the DIYer, and as a result, self-builders will rely on an electrician to undertake the whole task - many of whom are, of course, either sceptical or ignorant of the need for smart home wiring. Anecdotally, some self-builders see the introduction of a smart home specialist into the mix as another potentially complicating factor which they could do without.

That said, self-builders are keen to find out as much as possible themselves and are keen to drive the introduction of smart home technology. This is still very much a male-driven specification. What self-builders need more than anything is independent advice and professionals who can bring in tailored solutions, co-ordinating the many different exciting features of this technology into an affordable, easy-to-control system.

Conclusion

Self-builders love nothing more than showing their new home off to their friends and family, and secretly are excited by the prospect of how well the new features they have incorporated might sell their home in the future. Smart home technology is at the forefront of this, but there are vast opportunities for companies that can offer advice and tailored solutions in easy-to-understand terms. This is a rapidly-moving market - unlike the interminably slow building industry - that spends around GBP4.5 billion per year on materials for their self-build projects, and is always willing to invest in lifestyle-benefitting features.

Jason Orme is the Editor of Homebuilding & Renovating magazine, the UK's best-selling consumer magazine for self-builders and renovators. Homebuilding & Renovating magazine is the official media partner for The Smart Home Show - NEC Birmingham 10-13 April 2008.

www.homebuilding.co.uk