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1 posts from November 2009

November 10, 2009

Slower Broadband Speed could hinder house prices ...

For a while now, we have been talking about how the business world is changing at the fastest pace in history, and, that a growing trend will see more and more people working from home. Large companies will re-structure with fewer employees and more contract workers and freelancers who are brought in on a project-by-project basis.  The recession is also creating unemployment, and we will see the launch of many new home-based businesses over the next few years as a result of that.

Speaking as home workers ourselves, we conduct and manage virtually all our business via the web, and we are totally hamstrung without it!   I have mentioned at many of my speaking engagements over the last twelve months, how important broadband speed is going to be, and how property investors/Landlords need to understand this and ensure that any property they buy has good broadband connectivity. This will be an increasingly important facility for tenants, and will contribute towards future-proofing the property in terms of desirability.

broadband

The impact that the web is having on society and humanity in general is touching every aspect of our lives, including property investment, and in many different ways and at many different levels.

I was therefore interested to see
this article from ISP Review:

Slower Broadband Speeds could hinder U.K. house sales

The results from 721 respondents to our latest monthly survey reveal that 75% of readers would not buy a house, even a lovely one, if the best broadband ISP speed it could achieve was just 1Mbps. In addition, 51% would be willing to pay more for a house with "faster" broadband.

Some 61.7% of those surveyed said that the minimum broadband speed they require would be "More than 4Mbps", with just 20.8% voting for 4Mbps itself, 10.8% voting for 2Mbps and a measly 6.6% saying they'd settle for 1Mbps. Failing that, the most attractive alternative method to a fixed land-line broadband connection was found to be a Fixed Wireless ( Wi-Fi ) service (52.5%).

Would you buy a lovely house if it could only have up to 1Mbps broadband?

No - 75.1%
Yes - 24.8%

What is the minimum broadband speed you require (pick closest)?

More than 4Mbps - 61.7%
4Mbps - 20.8%
2Mbps - 10.8%
1Mbps - 6.6%

Which alternative method to land-line broadband would you consider first?

Fixed Wireless (Wi-Fi) - 52.5%
Mobile Broadband (3G) - 28.4%
Satellite - 19%

Would you pay more for a house with faster broadband?

Yes - 51.3%
No - 48.6%

People clearly place a significant emphasis on broadband performance, so much so that an overwhelming majority would even be willing to give up on an almost perfect dream home in favour of a cosmetically less attractive one that received faster speeds.

Estate agents have long voiced the importance of broadband equipped homes, though few may have recognised that modern demand also requires the service to be fast, affordable and flexible. This highlights the importance of being able to deliver speeds of more than double the current government target, which is committed to delivering a minimum 2Mbps broadband speed to everybody by 2012.

This may now simply end up being too little, too late.

Article ends.

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