News Column

Good Broadband a Factor for Nearly a Third When Choosing a Home

Feb 27 2013 12:00AM

Marketwire

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LONDON, UNITED KINGDOM -- (Marketwire) -- 02/27/13 -- Access to a good broadband signal(i) 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.

Paying a premium for 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 GBP 162,932(ii), this would mean nearly a quarter of people would be willing to pay up to GBP 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, comments:

"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."

Regional variances

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.

Table 1: (Of those prepared to pay) how much more (as a % of the house price) people would be prepared to spend on the same house for a good broadband signal--------------------------------------------------------------------------- Yorks Scot North North & West South South East land East West Humber Mids Wales East London East West Mids---------------------------------------------------------------------------Up to 3% 63% 85% 57% 78% 72% 72% 68% 70% 65% 76% 40%---------------------------------------------------------------------------4%-10% 31% 11% 23% 11% 19% 29% 24% 24% 20% 17% 33%---------------------------------------------------------------------------Morethan10% - - 1% - - - - 2% - - ----------------------------------------------------------------------------Don'tknow 7% 4% 19% 10% 9% - 8% 3% 15% 7% 27%---------------------------------------------------------------------------



Martin Ellis adds:

"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."

Notes to editors:

Independent research carried out on behalf of Halifax by ICM on 2002 adults in the UK, between 12-14 December 2012.

(i) Defined as being more than 2Mbps

(ii) The average house price in the UK in January 2013 was GBP 162,932, according to the latest Halifax House Price Index



Contacts:
Halifax Press Team:
Emma Varty
01902 325180 / 07824471951
emmavarty@halifax.co.uk

Lauren Jones
01422 394360 / 07825 584900
lauren.jones@halifax.co.uk

Shella Ali
0207 356 2014 / 07795 677754
shella.ali@lloydsbanking.com

Andrew Swailes
02073561714 / 07880 137791
andrew.swailes@lloydsbanking.com

Ben Marquand
01422 332833 / 788 131 1199
ben.marquand@halifax.co.uk

Halifax
Customer Services
0845 739 4959
customerrelations@halifax.co.uk





Source: Marketwire


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