Online agent says very slow broadband knocks 24% off house price

Ultra slow broadband speeds could knock a quarter off the value of a property according to research undertaken by online agency Housesimple. 

The agency looked at average house prices on streets with some of the slowest broadband speeds in Britain - less than 1Mbps, against the UK average of 46.2Mbps - and compared house prices on those streets with neighbouring streets in the local area, by looking at the postcode district average.

The research revealed that houses prices were on average 24 per cent lower on the streets with the slowest broadband speeds - £182,983 compared to £240,031 for the postcode district.

Slow broadband speeds may also have contributed to the lack of house sales on streets. Housesimple research found that across the 20 slowest broadband streets, just 27 properties were sold in the past 12 months.

“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” explains Housesimple’s chief executive Sam Mitchell.

“Buyers may be reluctant to purchase on a street where broadband speeds are so slow that they can’t do simple tasks such as open multiple web pages concurrently, speak to friends on social media channels and download movies, let alone work from home.

“It is often one of the first questions asked by buyers when viewing - how fast is the broadband connection? - along with the quality of the local schools and reliability of the transport links. As with any purchase, buyers need to do their due diligence. It is worth asking if 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.”