Extremely slow broadband speeds could knock a quarter off the value of a property, according to research by HouseSimple.
The online estate agents looked at average house prices on streets with some of the slowest broadband speeds in Britain – less than 1 Mbps versus the UK average of 46.2 Mbps – and compared house prices on those streets with neighbouring streets, by looking at the postcode district average.
The research revealed that house prices were on average 24% lower on the streets with the slowest broadband speeds – £182,983 compared to £240,031 for the average postcode district.
Of the 20 slowest broadband streets in the UK, HouseSimple found that average house prices were lower – and in many instances significantly lower – on 17 of those streets when compared to the postcode district average.
The figures suggest a slow broadband connection does in fact have an impact on house prices. For example, home broadband speeds on Coppice Farm Park, St. Leonards, Tring, are a woeful 0.719 Mbps – only 1/64 of the UK average broadband speed. Average house prices here are £211,333, which is 62% lower than the postcode district average of £556,974.
Elsewhere, broadband speeds in Blackstone Avenue, Glasgow, are at a speed of 0.669 Mbps, and average house prices here at 90,834 – 45% below the average for that postcode district (£165,505).
What’s more, pedestrian broadband speeds may have contributed to the lack of house sales on these streets, with the study finding just 27 properties were sold in the past 12 months across all 20 streets.
Sam Mitchell, chief executive officer of HouseSimple, said: “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. And having a fiendishly slow internet connection at home can really affect the saleability of a house.”
He said that buyers may be reluctant to purchase on a street where broadband speeds are so slow that they can’t do basic tasks such as open multiple web pages, use social media channels and download movies, let alone work from home.
“It is often one of the first questions asked by buyers when viewing, along with the quality of the local schools and the reliability of the transport links. As with any purchase, buyers need to do their due diligence,” he continued.
“It is worth asking it 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.”