This year, we worked with the Centre for Economics and Business Research to produce “The Value of UK Home Security” whitepaper. This first-of-its-kind research reveals the amount that UK households are willing to spend on the “perfect home security” system for their home, with the value UK households place totalling a collective £2.7 billion.
Location, location, location
Unsurprisingly, the report saw variations in the results based on how safe respondents perceived their local area to be. The research revealed that those living in areas believed to be less safe are willing to pay £113 a year, whereas, those living in areas considered safer, are willing to pay £75 a year.
"Intuitively, one of the key findings was a positive correlation between those living in areas with higher burglary rates and the willingness to pay for perfect home security."
Owen Good Head of Economic Advisory, from Centre for Economics and Business Research (Cebr)
Don’t forget the pets!
As a nation of animal lovers, it comes as no surprise that pet-owning households are also willing to pay more for their home security, as they seek to look after their furry friends. The research discovered that respondents with pets are willing to pay over 105% (£113) more on their home security compared to homes without pets, who were more comfortable paying £55 a year for their home security.
Age is just a number
A more surprising and perhaps counter-intuitive revelation is the correlation between age and the amount a respondent is willing to pay for their home security. The report revealed that the 18-24 year-old age group are the most willing to pay a premium for their home security, up to £238 a year, to protect their homes. By comparison, the over 65s are comfortable spending £45 year, which represents a massive difference of 430%.
“Interestingly, it’s the younger age demographic who are willing to pay the most, potentially as a result of the higher perceived likelihood of burglaries within this group. It can also partially be explained by other factors correlated with a lower willingness to pay. For example, older generations are more likely to live alone (and notably without children); live in smaller houses; and have a lower perceived risk of burglary. These are all wider factors which are associated with a lower willingness to pay for improved home security.”
Owen Good Head of Economic Advisory, from Centre for Economics and Business Research (CEBR)
The research supports this view, showing that the 18-24 year-olds are the demographic most likely to own smart home security devices. A whopping 75% of respondents in the 18-24 year-old age group own smart security devices. As age ranges increase we see a drop-off that culminates in the over 65s, of whom only 45% of respondents reported owning a smart security device.
"The younger generation’s willingness to pay a significant amount more than older generations to be “burglar-free” demonstrates the increased importance of feeling “safe at home,” and highlights the role smart home technology can play in supporting that feeling among the tech-savvy demographic.”
Dave Ward, Managing Director EU & International at Ring
Finding the motivation
The report also delves into what influences the purchase of a smart home security device, discovering that the biggest reason is the desire to gain “peace of mind” (42%). “Feeling safer at home” came in a close second at 40%, followed by “to act as a deterrent to burglary” at 30%. “Active remote monitoring” of the home, a deterrent to “antisocial behaviour” and preventing “damage to the property” also gained support from respondents.
What price for peace of mind?
What the report demonstrates is that UK adults are looking for peace of mind when it comes to protecting their homes and they are willing to make a significant investment in smart home security, no matter their background or household circumstance.
As Dave Ward, Managing Director EU & International at Ring, puts it:
"This research with CEBR confirms what we believe at Ring – having smart home security devices is a valuable investment that provides peace of mind to households across the UK."
Download the full report here.