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UK House Hunters Would Pay 5 Per Cent Extra for Faster Broadband Homes

Friday, September 28th, 2012 (8:08 am) - Score 817

A new trial conducted by independent estate agents Delaney’s in Essex (England, UK) has revealed that houses which were advertised alongside their broadband ISP download speeds were twice as likely to get a viewing request and scored 40% more online web page views in general.

The study, which involved BroadbandChoices.co.uk, also found that a third of the 2,000 strong house hunting respondents would be willing to pay between 2% and 5% extra for a home if it meant they could have a “high speed broadband” connection. That could mean adding anything from between £4,000 to £10,000 on to the price of a home advertised at £200,000.

Crucially one in five checked broadband speeds while investigating a house and one in ten potential buyers had even rejected a home purely because of its poor internet connectivity, which shows just how important it is for sellers to make sure that you’re getting the best speed possible for your area.

Rob Delaney, Delaney’s Spokesman, said:

As with good schools and south-facing gardens, people are now on the hunt for homes with fast broadband. It is a sign of the times. But we were still really surprised with the results of our trial. We’re now displaying broadband speeds on all our property details because it’s clearly what customers are looking for.”

Meanwhile 21% of people whom had picked a new home also arranged for their electricity supply to be sorted first, which was closely followed by broadband (19%), gas (10%) and then television (8%). Well there’s not a lot of point in sorting the broadband if you don’t have an electricity supply to recharge or run your related devices.

The study is similar to one we conducted in February 2012 (here), which found that broadband was “Critically Important” to 80% of the respondents home life and 57.4% said they would be willing to pay more for a house with superfast broadband (25Mbps+). It also revealed that 80.4% would be discouraged from buying a new home if it lacked good broadband connectivity. In terms of speed, the majority aimed for their new home to deliver speeds of anything from 10Mbps to 40Mbps.

But at the same time it must be remembered that measuring value vs broadband quality in any new home would be a highly subjective matter and thus not one that can easily be pinned down through generalisations. Similarly you might not technically pay more for a better connection unless it came down to a bidding war.

Leave a Comment
15 Responses
  1. This really does make me giggle! 🙂

    These people are said to be prepared to pay £4,000 to £10,000 more to buy a house with decent broadband but I bet most will also seek out the cheapest bucket shop prices for their broadband and moan if they have to pay more than a few pounds a month!

    1. Avatar Martin Pitt - Aquiss says:

      I was thinking exactly the same.

      I have said it for quite some time, for the importance placed upon broadband now, the prices in the UK are far too cheap. Broadband has been seen as a value added extra by a number of the main suppliers to hook customers in, especially where their core business is not broadband (Sky, TalkTalk etc).

    2. Avatar Bob says:

      I think the only thing that might have an influence on the price for a tiny percentage of House buyers is FTTH. A few Housebuilders are using that as a marketing tool. It is pretty cheap to but FTTH into a new estate provided the area has been enabled for FTTC

    3. Avatar Bob says:

      It would actually cost less than that to put in on BT’s provional inndication of Demand led FTTH. In fact the cost to put in FTTH to a whole street would be less than a £1000 a home in a built up area

  2. Avatar Bob says:

    THese surveys are normally pretty meaningless. What is said inthese survays and what people would actually do are very different.

    THe realityis most people would not pay extra. Why would they is someone going topay £5K over the odd just for HS BRoadband.Knowone is going tosay to the seller “Hi I see your house has HS Broadband I will give you another £5K for it)

    What will happen is if someone finds two houses that the like & one has HS Broadband and the other does not they will gofor that. Sothe only effect is that it makes your house marginallymore saLABLE

    1. Avatar Martin Pitt - Aquiss says:

      Bob, I would have to disagree.

      Every single week we get sales enquiries where people are looking to buy houses. They give us postcodes to see what options are available, and have literally turned down a property based on differences of expected speeds. Broadband and expected options is quite a big decision for people now as part of a house buying process, especially where home working is taking place.

  3. Avatar Phil says:

    It rather silly to fork out extra £5K just for a faster broadband available in your home ( I will never buy that )

    1. Avatar Martin Pitt - Aquiss says:

      I have spoken to local estate agents in the town previously about showing speeds at property locations (thankfully a couple agreed and have started putting it on sales details).

      However, during the discussions, twice i heard that house prices were reduced to get a sale because the buyer would need to offset some costs to improve broadband speeds…ie: get an EFM solution or leased line in. It’s certainly happening from what i can see.

    2. Avatar DTMark says:

      I might – if I were committed to a particular place and it were unique. But as said above if it came down to a choice of two competing places which were similar, and only one was cabled/in cabled area, then I’d just buy that one.

      I find it surprising that this is only starting to happen now. I gew up in Essex and we rented a few places there years back. I’d always say to EA’s “must be cabled” and the usual response was “we don’t have that information” resulting in me having to trawl through all the properties one by one putting the postcode into the Virgin Media site.

      Just recently, looking for office space in our local town, I was pretty sure no businesses could get FTTC but with that it’s arguably even harder to work out – just because there’a a fibre cab at the top of the high street doesn’t mean any business near it can have it, as it doesn’t supply those, but the D-sides are underground so you have no idea where they go and I still don’t.

      So I sent enquiries to the EA letting most of the town (stuff is shutting down fast, the same offices have been up to lt for years now and they’re giving them away) and they *did* have the information. The answer was “none”. And they were themselves quite annoyed by that. “There goes another potential lead we’ve lost”.

      Maybe there’s a market for a smartphone app you can just point at a house/office and it can tell you whether it’s cabled/has BT’s alternative.

  4. Avatar Bob says:

    THere may be a difference between business & residential. There is no evidence to support the claim that HS broadband has any impact on a properties price. If there was any evidence thay HS Broadand was a key factor in the decision making process of the average buyer Estate Agents would detail it on the particulars. THe fact that almost known do gives you the answer. Know of the Online propertys sites bother with it neither

    1. Avatar DTMark says:

      Some of it is probably under the radar so to speak, hard to quantify. Now BT is rolling out FTTC there may be a second option but in the past I’d simply ignore places that weren’t cabled, but then we’ve happened to move to towns which were cabled anyway deliberately as priority #1 with everything else secondary.

      If you have cable then move somewhere without cable, even if it’s a pretty normal urban place not far from the exchange, there’s the real potential for no broadband at all as happened to us (and to clarify – no ADSL at all, line too poor) and you then have to move again 7 months later one mile up the road to the “cabled bit”. Never doing that again.

      I have also seen a couple of threads (hardly conclusive) on MSE where people have actually backed out of house purchases at a late stage because they’ve discovered they’re not cabled.

      For business – office to let in local town c. £400/mo. Cost of broadband (no FTTC, no cable, so needs EFM) on 1 year contract c. £600/mo.

  5. Avatar Christopher says:

    Having to relocate for work has made me very interested in speeds and I have to say once you’re a couple of miles outside of a town the speeds are dire! Our house is for sale and the estate agent wouldn’t put the speeds on the specs (I get 10Mbps down and 1Mbps up at current house) BUT I have dismissed some great houses simply on the 800k speeds available! Not sure I’d pay 5% more but higher speeds and options of fixed wireless over ADSL would definitely make me consider one house over another.

    1. Avatar Bob says:

      Most agents would put HS bBroadband Available on the details. They may not want to quote specific speeds as they cannot verify the accuracy of the data.

  6. Avatar Hull_lad says:

    The hype appears to be paying off for some then!

    Yes, Broadband is becoming increasingly important, but as it stands, a stable connection of 10Mbps is adequate for most home users at present. I think this is more a reflection on the quality of the existing network, which frustrates many. And of course, you have the BTInfinity hype machine whipping up demand to make their investment pay off. I guess another question that needed to be asked of the respondants would be ‘Are you satisfied with your current broadband service’. We’d then at elast understand whether these guys were simply frustrated or they had genuine need for a superfast service.

  7. Avatar Broadbandman says:

    No question that broadband availability counts. We are increasingly being asked to supply Speed tests for marketing purposes.

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