How can broadband speeds influence the value of your property?

How can broadband speeds influence the value of your property?

Broadband is an essential service for every modern home, with even the most basic household tasks like watching TV and food shopping now requiring an internet connection. In fact, broadband is now so essential that it is considered to be a utility alongside gas, water and electricity.

It should be no surprise then that buyers and tenants are now considering broadband speeds when looking for a new property. In fact, a slow broadband connection could cost you up to a quarter of your house price according to research carried out by HouseSimple.

The study looked at average house prices on the streets that are considered to have some of the slowest in the country (less than 1 Mbps versus the UK average of 46.2 Mbps) and compared them to the house prices of neighbouring streets by looking at the postcode average.

Unsurprisingly, the results suggested that broadband does have a considerable impact on house prices. The research found that property values on streets with the worst broadband speeds were 24% lower than those where the broadband was at the national average speed or above.

Research carried out by other organisations backs these figures up. In a study carried out by Knight Frank, superfast broadband and a good mobile coverage is as equally important to tenants as having a good view from their property. According to the survey, 61.4% of respondents said that good broadband and phone connectivity were the most important factors when moving house, and 60.8% said the same about having a good view.

A separate survey by LivingCom found that broadband was classed as an essential part of renting with 96% of respondents saying they found it frustrating when the broadband in their property was slow.

So how can you, as a landlord, ensure that your broadband speeds don’t affect the appeal of your property? Although the speed of broadband is largely determined by the location of your property in relation to your nearest exchange, there are still steps you can take to improve the speed.

The first thing you should consider is your provider and whether they are the best for your area. There are numerous websites where you can find out which provider has the best service in your postcode area and offers the best deals. Fibre broadband is a speedier alternative to the standard asymmetric digital subscriber line (ADSL), and is becoming more common. Where it was previously considerably more expensive than ADSL, providers are starting to offer fibre broadband at a more affordable price.

If you are not willing to commit to a new broadband deal, you can make minor improvements like purchasing a new router or wifi boosters, which are available from high street retailers for as little as £20 – a small investment to improve the value of your property.

It’s easy to regard broadband as an afterthought as it has only become an ‘essential’ in recent years. However, with more households relying on their internet to carry out basic tasks, it’s important that landlords ensure that they have the best possible broadband in their property.

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