Location, location, location is the estate agent’s mantra when asked to define what makes a property hot – or not. But these days where your house sits on the digital highway can also prove crucial to luring prospective buyers.
It’s no secret that the rollout of super-fast broadband and mobile connectivity in the UK has been beset by delays – the goalposts set by successive governments have been moved several times over the years, due to various (buffering?) issues.
But does being able to binge at will on the HD version of the latest TV series, or having the ability to do your entire grocery shop on a 300Mbps connection, really influence people’s decisions when buying a house?
According to the results of Knight Frank’s Buyer Survey – which canvassed the views of over 500 prospective buyers across the UK – the answer is a resounding yes.
Nearly half of the respondents to the survey said they would be more likely to buy a house in an area with good internet connectivity or superfast broadband.
Add to that the further 32 per cent of respondents who said they would research an area’s connectivity or ask an estate agent about broadband speeds before making a purchase and the importance of internet speeds and capacity becomes apparent.
In fact, with 61 per cent of respondents saying that having superfast broadband and good mobile coverage was important to them, reliable and fast internet access now competes with a good view for predominance on the ‘wanted list’ for buyers, and it is more important than secure parking, according to our respondents.
As a result, a poor broadband connection can be a stumbling block for some buyers. A poor connection means that work which involves moving large amounts of data can be tortuous, and watching television online is frustrating at best. Buyers loathe to walk away from their dream home however do now have access to a plethora of businesses which offer to fit bespoke fibre-optic broadband to their front door.
Ed Cunningham oversees Knight Frank’s South West region. He said: ‘In an increasingly global and fast-paced world, the priorities of what buyers consider when purchasing a home have begun to shift. Moving forward it will be essential in the country markets that areas have strong broadband connectivity and mobile phone coverage so residents do not feel they are compromising on lifestyle by living in the countryside.
‘Businesses can now be run from the home, people commute from all over the UK to work, and relatives and friends are dispersed abroad and in Britain, so it is a professional as well as personal necessity for people to be able to have instant internet and phone access.’
Indeed, given the growing number of people who would like to work from home, and the increasing volume of entertainment that is delivered online, it is likely that good broadband will become ever more important to property buyers.
Autumn Statement
Broadband is expected to feature in Chancellor Philip Hammond’s Autumn Statement tomorrow with the announcement of a new Digital Infrastructure Fund, and housing is another topic which will probably loom large.
The shortage of housing across the country and the increasing issue of affordability is something the Government wants to tackle – and quickly. Expect Hammond to announce the new housing delivery figures with a flourish: data out last week showed that net supply (the number of houses built and converted to residential use) rose in the year to April 2016 to around 189,000, taking the number of new homes closer to the magic 200,000 mark laid down by the Government as an annual target several years ago. However, many think tanks and other policy experts believe that the real annual target for housing should be closer to 250,000 or 300,000 a year.
If the Chancellor doesn’t get into the nitty gritty of housing policy in his speech, do not think the subject has been overlooked. It is expected that a hefty tome called a Housing White Paper will be released around the same time. This will include the Government’s latest thinking on how to boost housing supply, and will likely include the pre-announced £3 billion fund to accelerate construction and £2 billion to help speed the delivery of public sector land. Also, expect support for small to medium-sized builders and for modular building.
Oliver Knight is an Associate at Knight Frank Research
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