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Halifax Study Claims Good Broadband Access Boosts UK House Values

Friday, February 8th, 2013 (5:49 pm) - Score 883

A new survey of just over 2,000 UK adults conducted by ICM for the Halifax (Lloyds Banking Group) has claimed that 20% would pay more for “good broadband” (defined as speeds greater than 2Mbps) and two thirds (67%) of those were prepared to pay up to 3% more (22% would pay between 4% to 10% more).

The study, which was carried out between 12-14th December 2012, notes that the average house in the UK now costs £162,932 and as a result almost a quarter of people would conceivably be willing to pay up to £16,293 extra to buy a home with 2Mbps or faster connectivity (2Mbps is a pretty low bar to set for “good” broadband).

Overall some 30% said that access to a good broadband service was at least “likely” to affect their buying decisions, although it’s interesting to note that this increased to 32% for people in urban areas and fell to 25% for rural residents.

Martin Ellis, Halifax Economist, said:

A strong broadband connection is an increasingly important factor when choosing where to live. We are living in the digital age and as such more people are choosing to work from home, but as well as this it’s a part of our everyday lives with web browsing and streaming television commonplace.

As a result we find people are increasingly prepared to pay a premium for homes with a good broadband signal, and this is likely to remain a factor when choosing where to live.”

Elsewhere 34% of Men said that broadband was likely to affect their decision, which fell dramatically when the same question was put to Women (26%). Similarly 40% of those aged 18-24 agreed that it would affect their decision, which fell to 24% for those aged 65+.

However it’s inherently very difficult to attach a specific financial value to the quality of broadband and its impact on home values. Requirements and property prices vary from place to place and person to person, thus any decision is always about more than a single service.

Certainly a home with good broadband is bound to weight into the decision but as to whether you’d actually pay extra? That’s a highly subjective question. Credits to Thinkbroadband for spotting the survey.

Leave a Comment
7 Responses
  1. Avatar Bob2002 says:

    FTTC coverage was one of the features I took into account when house hunting. I would have been even more interested if the property had FTTP.

  2. Avatar Sledgehammer says:

    Well when 4G becomes established no one will have to worry about speed will they. The price of a house will no longer depend on the speed of the internet connection.

    1. Avatar Anoyed tax payer says:

      @Sledgehammer I think you should have said 5G, as 4G can’t get anywhere near FTTC speeds indoors.

  3. Avatar Sledgehammer says:

    @ Anoyed tax payer

    I was thinking more about people that are on 2 meg to 14 meg, surely they could be a lot better off than they are now. With the big plus NO MORE BT. One would not have to worry about costs moving house, plus if you holiday in the UK you take your mobile and PC with you. So you remain in contact as far as Calls and Internet go.

  4. Avatar Bob says:

    I doubt it. What would probably happen is if you were interested in two houses and one had better Broadband than the other you would go for that one.

    Almost no one would pay a higher price. What survys show and what the reality is are very different

    Look at FTTC take up it is still very low and the price difference is not great. So if people are not prepared to pay out a few pound extra a month for FTTC they are not going to pay out an extra £5000 on a house simply because it has slighly faster Broadband.

  5. Avatar Chris Conder says:

    People won’t even go and look at houses in notspots any more, and they ask for 3 month’s speed tests before they consider properties. so the estate agents tell me. If you get a few buyers interested you can hold the price instead of reducing.
    4G is no good for rurals, neither is satellite, buyers won’t come. People who can get FTTC are usually quite happy with the service they already have, that is why they don’t go for the new one, there isn’t that much difference to them. The ones who really struggle on adsl can’t have FTTC, they are either in cabinet free zone or on long line lengths. Those are the houses that won’t sell. The others will rise in price and they will fall. The writing is on the wall.

  6. Avatar DTMark says:

    I’m not sure that the premise that people will pay more for a house that can get broadband is quite right, rather, the pool of available buyers for houses that can’t have it is reduced.

    We took a look at a stunning house in a village called Cheriton at the weekend, it’s everything we wanted, in a lovely village.

    Then on checking, there’s only one 3 cell in range rather than three of them, as here, and the DSL checker returns the so-predicatable “up to 2Meg” forecast. Would have checked before and turned it down but we were passing that way anyway.

    I can’t even be bothered to check how long the line is since the line here is only 3682m long and that’s useless, unable to even attain 2Meg. Yet the data East Hants were working with suggested 31Meg available via FTTC if enabled which seems more than doubtful to me as line qualities here are so very poor.

    Trying to work out how long the line is likely to be and where the exchange/cabinet is on Streeview is even more tortuous than checking to see if somewhere is cabled. There is no way to check the quality of the line before moving most especially if the current occupiers have moved out already since you can’t establish what they get.

    The result is that I still think you have to move somewhere cabled to get any probability of a good broadband service. Same as it ever was. Sadly I think we’ll be saying goodbye to rural Britain, with still no absolute certainty of anything better in an urban area.

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