Superfast helps to keep house prices up to speed
Wednesday 9th August, 2017
It used to all be about ‘location, location, location’ but these days it seems that any number of things can influence the price of a property.
Some of these factors are quite quirky. For example, it’s said that the value of a house can go up significantly if there happens to be a branch of Waitrose nearby. Others believe that the number on the door of a property can affect its price.
A study by Zoopla, revealed that on average, odd-numbered properties sold for £538 more than even-numbered equivalents. However, growing evidence suggests that there’s one particular factor having one of the biggest impacts on property values in the modern age - superfast broadband.
All mod cons – including superfast
Today’s buyers want superfast. High connectivity speeds are becoming just as sought after as school catchment areas. That’s why estate agents tend to highlight superfast broadband speeds with the other particulars of a house for sale.
For example, Rightmove’s website includes a broadband tool on its website so that property hunters can find out about broadband speeds and availability. They recognise that lots of buyers are ready to pay more to get superfast. In fact, research from the Halifax research revealed that 20% of respondents said they would be prepared to pay more for a home if it had good broadband.
Martin Ellis, economist at Halifax, 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.”
Paying a premium
He added: "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."
Findings from a London School of Economics study showed that on average house prices increased by 3% when broadband speeds doubled.
While research carried out by ISP Review also found that some people would be willing to pay more for a home with faster broadband - nearly 6% said they’d pay 3-4% extra and almost 5% said 4% or higher. And according a GoCompare survey, while living in a good neighbourhood was ranked the top priority by two thirds (66%) of 2,000 people polled, 43% want a good, reliable broadband connection that was strong enough to stream TV and films. This is closely followed a specific desire for superfast broadband (39%).
All of this spells good news for buyers and sellers of homes that are connected to a superfast fibre network. To date that includes more than 26.5 million premises up and down the UK that have access to superfast – a number that’s increasing all the time.
Adding more value
But what about those in the so-called ‘final
five per cent’ of the population not included in any fibre rollout plans?
According to Steve Haines, Openreach’s managing director for Next Generation Access, more and more communities who don’t yet have fibre are turning to BT’s Community Fibre Partnership programme to get themselves connected and help sustain the values of their properties.
“I’m delighted to see an increasing number of communities up and down the UK striking co-funding deals, through our partnership programme, and getting themselves connected to Openreach’s superfast network. Not only are they able to enjoy all the benefits of superfast through a provider of their choice but they know that the connectivity they’ve helped organise will help keep the price of their homes buoyant.”