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Having Slow Broadband Could Knock 20% Of Your House Price As Fast Download Speed Becomes Vital To Homebuyers

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http://www.dailymail.co.uk/news/article-2571294/Warning-having-slow-broadband-knock-20-cent-YOUR-house-price.html

Broadband has become so important to people buying a home that properties without a fast connection are worth up to 20 per cent less than those that do.

More and more householders are using media streaming services such as Netflix and an increasing number of employees now work from home.

As a result, consumers now see broadband as a necessity - and some will even pull out of a deal if the property doesn't have it.

Hilarious, 20% off a house with poor pron access.

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Broadband availability has been an essential for many years. As recently as 2010 I wrote some input to a consultation locally (reproduced below): note the "Sword of Damocles" paragraph!

But for the meeja to latch onto it right now seems incredibly perverse, given that satellite broadband to fill the gap has finally reached prices competitive with terrestrial infrastructure.

I’ve been invited to offer my thoughts on rural broadband, and its effect on business[1]. On the grounds that I’m both a techie and a user, and might therefore have something more to contribute than those who are one but not the other. The audience for this exercise might even include some of our elected politicians!

So here are some thoughts.

Policy Confusion

Politicians have spoken of a new generation of high-speed broadband based on optical fiber. An admirable goal subject to cost constraints, but a completely separate issue to basic, always-on ADSL-grade connectivity. The latter is what really matters, and we want it now, not ‘eventually’.

Politicians have tended to confuse the basic essential with the more ambitious goal. They need to be clear. Rural areas don’t need motorways, but we do need basic access, and we don’t want to be kept waiting while the new motorways are rolled out!

Anecdotal

My own experience is that ADSL arrived in about January 2004. 2004 is the year my circumstances moved away from poverty, before completing a turnaround and generating good money in 2005. Since then it has helped me to work for clients and later an employer on distant continents, and to work with a US publisher on my book. ADSL has made all the difference between poverty and prosperity!

The Sword of Damocles

The biggest issue facing rural business is the risk of moving to a new home or premises and finding there is a problem with broadband. We desperately need to be able to get a reliable indication of whether broadband will be available at a prospective address. This has improved since the days of no guarantees anywhere, but that leaves large no-go areas where BT’s checker is ambiguous.

Alternative Solutions

For areas where ADSL (or other terrestrial solutions) are irredeemably uneconomic, might a better solution be satellite broadband? Not to be confused, of course, with the one-way-only data used by satellite TV and optionally supplemented by other means (usually ‘phone lines). Promoting satellite broadband more widely could help bring costs down (economies of scale), and policymakers could perhaps encourage it – e.g. with tax breaks or even rural development funds. Could be particularly useful for a rural hamlet too small for a telephone exchange, where a satellite connection could serve as a shared hub. This is something where we (locally) could seek to ally ourselves with other rural areas more widely: at EU-wide level (for instance) it could have real weight.

[1] My definition of business here includes self-employed and employees working from home or from a small rural office, as well as more traditional business premises. The arguments apply to everyone short of bigger-biz with the resources to provide their own broadband connection privately.

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A friend pulled out of a house rental because of the lack of broadband. I can't see 20% though.

It matters more for renting than buying. That is to say, if renting somewhere without broadband, I'd want the landlord to install the two-way satellite dish for me.

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Yup, had to pull out of a rental in Docklands due to lack of broadband on new build Docklands back in 2001. ISDN wasn't available either I kid you not. Struggled with decent broadband even on the Isle of Dogs, the irony being this is a major internet peering point, but the problem of BT's 'last mile' being substandard copper.

Fast forward, I now enjoy 120 Mbit fibre optic broadband, soon to be upgraded to 160.

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Aren't properties without superfast broadband generally in remote rural areas/small towns/villages - and less so in big cities.

So isn't it inevitable that prices will be lower - because prices are lower in remote rural areas/small towns.

Given broadband expansion however surely you should buy in a slow speed area - and when you get superfast broadband your house price will immediately rise 20% :lol:

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My youngest son has net based work. The old lines on his previous address couldn't give more than 8mb, often less. 100mb where he is now and his extra income from that speed more than covers the extra rent.

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Nimbys want fast broadband? Maybe if there were more houses there would be economies of scale.

Edited by Ash4781

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It matters more for renting than buying. That is to say, if renting somewhere without broadband, I'd want the landlord to install the two-way satellite dish for me.

Satellite connection is something people use, I know people that do. ;)

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