Good broadband a factor for nearly a third when choosing a home
Wednesday, 13 February, 2013
32% of people in urban areas say it is likely to affect their decision, compared to 25% of people in rural areas
20% say they’d pay more for good broadband, with two thirds of those prepared to pay up to 3% more for the same home if it had a good broadband signal
Access to a good broadband signal[i] is an important factor when choosing to buy a home, according to research from Halifax.
Nearly one third (30%) of people surveyed said it is likely to affect their thinking on whether to buy a home in a particular area. And one fifth (20%) say they would be prepared to pay more for the same home if it had good broadband.
Paying a premium for broadband
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%-10% more. With the average house in the UK now costing £162,932[ii], 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 is likely to affect their decision, with 40% of 18-24 year olds compared to 24% of those aged 65 and over. And there is also a clear split along gender lines, with men (34%) more likely to say it is likely to affect their decision than women (26%).
Martin Ellis, economist at Halifax, comments:
“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.”
A good broadband signal is more likely to affect people’s decision to buy a home in urban areas (32%) than in rural areas (25%), however, 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. And while more than a quarter (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 say they would pay more for the same home if it had good broadband.
Martin Ellis adds:
“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 it is perhaps no surprise that 94.2% of households report having a strong broadband signal.”