Home buyers in UK prepared to pay more for a property with good broadband
More home buyers in the UK regard having a good broadband signal as essential when looking at a property and many are prepared to pay more, new research shows. Some 30% of people say access to a good broadband signal is likely to affect their decision on whether to buy a home in a particular area, according to the survey from the Halifax, one of the UK’s biggest lenders.
In urban areas some 32% of people say it is likely to affect their decision, compared to 25% of people in rural areas and 20% say they’d pay more for good broadband, with two thirds of those prepared to pay more for the same home if it has a good broadband signal. Of those who would consider paying more for good broadband, 67% would pay up to 3% more for a property with a good broadband signal and 22% would pay between 4% to 10% more.
As the average house in the UK now costs £162,932, this would mean nearly a quarter of people would be willing to pay up to £16,293 extra to buy a home with good broadband. Younger people are more likely to say it would affect their decision, with 40% of 18 to 24 year olds compared to 24% of those aged 65 and over. There is also a clear split along gender lines, with men at 34% more likely to say it would to affect their decision, as opposed to just 26% of women.
‘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,’ said Martin Ellis, economist at the Halifax. ‘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,’ he added.
Quote from PropertyCommunity.com : “I spend about £28 on electricity every two months, £50 on LPG bottles every three months (heats water, gas burners and oven). The phone runs about £35 a quarter, the broadband connection is £29 a month, and the satellite TV system is also £29 a month. Every two months the waste tanks are pumped out at £12 a time. Water is free. Diesel for heating and engine runs about £300 a year but we also make long trips which boosts the cost.”
The research found, however, that there are significant differences across the UK. While 38% of people in Wales say broadband signal is likely to affect their decision to buy, just 21% of those living in the North East agree. While 26% of people in the East of England say they would pay more for the same home if it had good broadband, only 17% of people in the South East and Scotland agreed.
When looking to buy a home people look at factors such as good schools, low crime rates, access to good road and rail links and also good broadband speed. The Halifax Quality of Life Survey analyses 17 of these indicators and we have found there is a correlation between the top places to live in the UK and the fact they tend to have a strong broadband signal. The latest survey found residents living in Hart in Hampshire have the highest quality of life in the UK, and 94.2% of households report having a strong broadband signal.