First of all let’s see if we can find out what “good” is. Halifax who are responsible for the press release headline “Good broadband a factor for nearly a third when choosing a home” define it in their Quality of Life Survey as “a minimum download speed of 2Mbps” hmmm.
Moving on from the detail to the bigger picture overall they found:
- 30% of people (32% urban 25% rural) say access to a good broadband signal is likely to affect their decision on whether to buy a home in a particular area
- 67% of us would pay up to 3% more on a house purchase for this privilege and
- 22% of us between 4% and 10%
“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.” Says Martin Ellis an Economist with Halifax.
The remaining 4 of the top five locations in “qualitative “ terms were:
- 2 Elmbridge
- 3 Tunbridge Wells
- 4 Wokingham
- 5 Waverley
The three locations boasting 100% residents with this “good” broadband speed were:
- Epsom & Ewell
- Kensington and Chelsea
- Richmond Upon Thames
Now we’re beginning to sense a bit of a South East / London centric trend emerging!
So back to the real question. What is it worth? Well Halifax have computed from their latest (January) house price index an average house price of £162,932 and as 22% of us would pay BETWEEN 4% and 10% extra for good broadband ergo
- “….nearly a quarter of people would be willing to pay up to £16,293 extra to buy a home with good broadband”
- and we reckon over two thirds would be willing to pay up to £4,888 (3% of £162,932)
But to, almost definitely, get this good service in an area where virtually all houses have such speeds – lets take Richmond upon Thames the average house price we think might just be a little bit more. The average is £533,333 per London Property Watch (scroll down to the end of the page!).
Now according to the regional data 20% of people in the South East would pay upto 10% extra for good broadband so that’s £53k and our two thirds again would pay an extra £16k ish.
We having studied the situation in some detail are firmly in the “Don’t know” camp!”
Header – Halifax with our coloured ranking