Published: 6th Aug 2014
New research has shown the positive impact a good broadband connection can have on house prices.
According to data compiled by Imperial College Business School and the London School of Economics and Political Science, every time the average connection speed at a property doubles, its value is increased by three per cent.
The organisations said the price rise is always most dramatic when starting from very low connection speeds and is less pronounced when the original speed is faster. For example, an increase from eight to 24 Mbps generally sees a boost to home value of one per cent.
According to their research, people in London are the most willing to pay more for a better broadband service and in some cases residents of the capital would part with up to eight per cent extra for a home with a good level of connectivity.
Professor Tommaso Valletti of the imperial College Business School, who co-authored the report, stated: "This study shows that when it comes to the access to the internet, speed matters.
"In this digital age a fast, reliable broadband connection is important; more of us are working from home and using an internet connection to stream TV programmes, make video calls and to browse the web."
The organisations' report was based on statistics collected over a 15-year period spanning 1995 to 2010 and included analysis of more than one million homes across England.
This is not the first research to demonstrate the positive impact broadband can have on housing prices. According to Rightmove, a slow connection can reduce a home's value by as much as 20 per cent and many homeowners now place greater emphasis on finding a property with a strong level of connectivity than locating one that has good transport links and nearby schools.
In June, the Daily Mail reported on a house in Wales that has allegedly been stuck on the property market for a decade due to its lack of reliable internet access.
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