Slow Broadband Knocks a Quarter Off House Prices

Frustratingly slow broadband speeds can knock almost a quarter off the value of a home, according to online estate agent HouseSimple.

A recent study conducted by the agency analysed house prices on streets with some of the slowest broadband speeds in the UK and compared them with the prices of other properties in the neighbourhood. The houses examined had broadband speeds of less than 1Mbps, much slower than the UK average of 46.2Mbps.

The research found that house prices for properties on streets with the slowest broadband were on average 24% lower than the average price of a home in its postcode. The average price of a home on a street with the slowest broadband was £182,983, while the cost of a home in their postcode districts was on average £240,031.

The biggest contrast in house prices for homes with slow broadband was seen in Coppice Park Farm in the village of St. Leonards in Buckinghamshire. Houses on that street have ultra-slow broadband speeds of just 0.719Mbps, while the average price of a home on the street is £211,333. That is 62% lower than the average house price in its postcode district, which is £556,974. And in Blackstone Avenue in Glasgow, where broadband speeds are even lower at 0.699Mbps, the average house price of £90,834 is 45% below the postcode district average of £165,505.

Out of the 20 streets across the UK that were involved in the study, house prices were lower than the postcode district average in 17 of them. Sales were also slow in streets with ultra-slow broadband. Out of the 20 streets, only 27 properties have been sold in the last year.

“Broadband is now considered the fourth utility after water, gas and electricity, such is our reliance on a fast internet connection at home for everyday tasks such as food shopping and watching the television,” said Sam Mitchell, CEO of HouseSimple. “And having a fiendishly slow internet connection at home can really affect the saleability of a house.

“Buyers may be reluctant to purchase on a street where broadband speeds are so slow that they can’t do simple tasks such as open multiple web pages concurrently, speak to friends on social media channels and download movies, let alone work from home.

“It is often one of the first questions asked by buyers when viewing – how fast is the broadband connection? – along with the quality of the local schools and reliability of the transport links. As with any purchase, buyers need to do their due diligence. It is worth asking if the internet is slow for any reason, most sellers will be happy to explain why that is, and be able to provide the best advice on your broadband options, to ensure the best connection possible.”