In the present day, fast and reliable internet connections remain essential asymmetrically to access both transportation and utilities when valuing a property. As for prospective purchases and rentals, the availability and quality of broadband are important factors, especially now that many more people are working from home, streaming online content frequently, and using multiple devices at once. But how does broadband speed and availability impact on property values in the UK?
An Overview of the UK Broadband Infrastructure
Over many years, the UK government has invested largely to extend the national broadband reach through projects, such as the Superfast Broadband Programme. It is expected that more than 96% of UK homes have accessibility to superfast broadband, which is classified as having minimum speeds of 30Mbps. There are also ongoing changes which are attempting to construct ‘gigabit-capable’ networks, which provide improved connectivity, particularly in rural and poorly served areas.
Which Areas Are Best Covered By Fast Broadband in The UK?
London, Birmingham, Manchester or any other urban centre houses the widest coverage of superfast and ultrafast broadband. Ofcom reports that as far as the roll-out of the broadband network is concerned, these cities in the UK are leading the way with the development of fully-fibre networks.
Which Areas Suffer From Slow Internet in the UK?
Rural areas such as those in Scotland, some parts of Wales and Northern Ireland have received funding for infrastructure improvements, however still lag behind. Conceivably, the UK’s plans are much more ambitious as every home will be connected with full-future-proof fibre broadband by 2030, this could balance the playing field between urban and rural properties even more.
Property Values and Access to Fast Broadband
There is a clear correlation between access to fast broadband and property values in the UK. Properties equipped with full-fibre broadband can see an increase in value of up to £5,000, according to estate agent, Haart. Other considerations are whether or not a property can access fast internet through broadband satellite or wireless internet opportunities.
Renting and Fast Broadband
Besides everything mentioned above, broadband resources are also important in the rental market. Fast internet is especially important for younger renters, such as millennials, gen-y and gen-z, as they heavily rely on internet connectivity. According to The Property Voice, a recent survey found that poor internet speeds can decrease the attractiveness of rental properties, potentially leading to lower rental demand or even reduced rents.
Does Poor Broadband Reduce Rental Demand?
Yes, poor broadband or slow internet connections can reduce the number of rental applicants to your property. With many people working remotely, or from home, and students of many different ages relying on a quick broadband connection, housing with limited broadband access would not be priorities for renters.
Selling or Buying Property: Does Broadband Accessibility Affect Prices?
When considering selling or purchasing a property, having broadband capability has become one of the determinants. For sellers fast broadband helps to increase the value of the property as it makes the property competitive with its rivals in the market. On the other hand, situations where very poor broadband internet is available will make buyable homes lose buyers or their price may decrease in the process of selling during negotiations.
