Date Published 12 February 2013
Access to a good broadband signal 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.
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, 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, said: "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.