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Majority of people willing to pay more for home with good broadband
Friday 08 February 2013 15:37:11 by Andrew Ferguson

The importance of broadband in the home buying decision has been a major factor for the technology freaks in the UK but a survey by the Halifax reveals how important it is to the general public.

"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."

Martin Ellis, economist at Halifax

The definition of a good broadband connection is fairly minimal at 2 Mbps in the survey, but with 30% of people saying good broadband will affect their decision to buy a home in a particular area. The more biggest surprise is the amount of money people we willing to spend if a home has a good broadband connection, a fifth of people would be willing to pay an extra 4% to 10% on the price of a property which is a significant sum of money when average UK house price is £162,932. The number willing to pay a 3% premium is even higher, with 85% of those in the North East will to pay the extra, dropping to 40% in the East Midlands and averaging out at two thirds.

It is this price premium that Openreach may be gambling on with its roll-out of fibre on demand this spring, in that as people move home they may use this as an opportunity to pay the connection fee for a full fibre connection and after a few years there will be a sufficiently large numbers of homes in the UK passed by the Openreach GEA-FTTP network that the price premium for fibre on demand will vanish.

Comments

Posted by herdwick over 4 years ago
4% on top of that (rather amusing) average house price is £6,480 which is well inside the cost of providing FTTP to the great majority :-)
Posted by undecidedadrian over 4 years ago
Well once that gets put into the Daily Mail I can see a lot of the NIMBYS suddenly dropping all objections and demanding that FTTC is rushed to their area.

How red faced will Kensington and Chelsea council will be at these results.
Posted by Going_Digital over 4 years ago
I'm not sure I would pay more for a house with good broadband, but I would be reluctant to buy one in a not spot, that might reduce the number of buyers and therefore lower the price.
Posted by Michael_Chare over 4 years ago
I have also read that it is also becoming more difficult to rent out houses that don't have a good broadband connection.
Posted by herdwick over 4 years ago
How do we reconcile this with the unwillingness to pay for higher quality services ?

85% will spend several grand more on a house but only 15% take up FTTC services ????
Posted by Michael_Chare over 4 years ago
@herdwick. UK average take up for broadband is 74%. People who move house may also be just that more likely to want broadband.
Posted by andrew (Favicon staff member) over 4 years ago
Because they can pay more and its less visible on the mortgage maybe.
Posted by Joppy over 4 years ago
Can't take an article seriously when "good broadband" is measured on speed. 10Mbps can be better broadband than 100Mbps, especially if you look at virgin and video streaming.

Many may choose a location based on internet services available which could potentially increase the price but ultimately a house choice will come down to how much they like the house.

With openreach and other options hitting more areas across the country, premiums for connectivity may be diminished anyway.
Posted by Discus over 4 years ago
I wouldn't pay more for speed, but it was a significant factor for our recent home move. Every property we viewed I checked the attainable speeds as I was not prepared to have the upheaval of a move and the same rubbish connection. As it happens, we have very good ADSL2 speeds and FTTC is also available at our new property.
Posted by cyberdoyle over 4 years ago
I asked estate agents what people ask, and many say they are now asked for 3 months of speedtests before a viewer will even visit a property. Everyone knows about notspots, and nobody wants to view a house in one. Despite what government believe, there will still be many for at least a decade, as FTTC will only help those with fair connectivity at the moment, it won't help the notspots. That's why take up isn't spectacular.
Posted by New_Londoner over 4 years ago
@CD
Spectacular error to say FTTC does not help hotspots. As as been said on here many times, 90% of us live with 1Km of a cabinet, most rather closer. Are you seriously suggesting distances to exchanges are lower?
Posted by cyberdoyle over 4 years ago
shot yourself in the foot there New Londoner, fttc does help hotspots. Its notspots it does sweet FA for. Its the 90% that the funding is helping, but it was intended for rural areas. The market can and should deliver to those within 1km of a cab.
Posted by Somerset over 4 years ago
cd - so FTTC won't help those on cabinets on the edge of exchange areas?

Why do agents needs 3 months of speed tests, and how many have them? Putting the address into the checker is a good start.
Posted by New_Londoner over 4 years ago
@CD
Well we clearly disagree about whether FTTC helps notspots. I see no reason to think that a cluster of properties ( say a village) some distance from an exchange would not benefit directly from FTTC and can think of plenty of rural examples of this. Clearly these will increase with the growing number of BDUK contacts now these are finally being awarded.

Oh, and the BDUK money was intended for the final third, no idea where your 10% came from, sources?
Posted by Gadget over 4 years ago
@CD
Clearly the good folk of Islip were in a not-spot, and enabling their cabinet was something that helped them.... http://www.thinkbroadband.com/news/5659-villagers-bypass-long-bduk-wait-and-pay-for-cabinet-upgrade.html
Posted by drteeth over 4 years ago
One's current ISP can get info of any line with the phone number. I checked out this house before I moved. I was only willing to go up in speed.
Posted by Dixinormous over 4 years ago
This is why I'll be investing in FTTPoD when available, and I mean investing.
Posted by chilting over 4 years ago
If this Halifax report is correct we can expect to see broadband speeds affecting our local housing market here in West Sussex. In my village West Chiltington speeds below 2 meg are common but in Storrington just a few miles away they are due to get fibre in a few months time. The irony is that our West Chiltington exchange is in the same building as the Storrington exchange.
Posted by mikejp over 4 years ago
chilting - to cheer you up, there is major inter-exchange fibre running through the village too, and has been for while (now running via di Marino's x-roads), but no BT plans before 2015 to provide FTTC so we wait to see what we get from the County plan. ADSL2 in Storrington does not reach us as you know.
Posted by chilting over 4 years ago
Yes, the fibre cable runs within feet of the site of the old West Chiltington telephone exchange that BT sold to a property developer. As for ADSL2, that has made little difference to my speeds. I am getting just 2.3 meg tonight with 2 LINES BONDED it is costing me about £60 per month. Thank you BT, thank you West Sussex CC.
Posted by otester over 4 years ago
@chilting

Who is your ISP?
Posted by chilting over 4 years ago
My ISP is not the problem Andrews and Arnold give me a good service. The problem is that I am about 3 miles by road from the exchange. The cable length is much longer, none of the cables in West Chiltington go direct. Some of the copper cables are well over 50 years old and we have aluminum coated cable and unducted cables as well.
Posted by drsox over 4 years ago
chilting, I've just managed to come across this page after searching information about why WC exchange is in the same place as Storrington yet has differing availability of services.. strange setup.
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