Slow broadband could cut a quarter off the asking price of a property, research suggests

Slow broadband speeds could reduce the price a property will sell for, with very low speeds resulting in a reduction of a quarter off the asking price, according to new research.

The from online estate agent Housesimple shows that houses prices were on average 24% lower on the streets with the slowest broadband speeds at £182,983 compared to £240,031 for the postcode district concerned.

The slowest broadband is less than 1 Mbps when the UK average is 46.2. Poplar Avenue in Oldham was found to have the slowest at 0.221 where houses cost 8.7% less than in other streets with faster speeds.

The next slowest was St David’s Close in Worksop at 0.29, with houses priced 42% less, then Milton Road in Waterlooville at 0.338, causing a 17.9% decline in prices compared with other streets.

Overall, taking the 20 slowest broadband streets in the UK, Housesimple found that average house prices were lower, and in many instances significantly lower, on 17 of those streets when compared to the postcode district average.

One of the biggest impacts was in Coppice Farm Park in Tring with a speed of 0.719 Mbps and where average prices at £211,333 are 62% lower than the postcode district average of £556,974.

Broadband speeds in Blackstone Avenue, Glasgow, are 0.669 Mbps. Average house prices on Blackstone Avenue are £90,834, that’s 45% below the average for that postcode district at £165,505.

The research suggests that slow broadband speeds may have also contributed to the lack of house sales on these streets. Housesimple research found just 27 properties were sold in the past 12 months across all 20 streets.

‘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,’ said Sam Mitchell, chief executive officer of Housesimple.

‘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,’ he pointed out.

He explained that one of the first questions asked by buyers when viewing is how fast the broadband connection is 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,’ he added.