Does a faster broadband speed add value to a property?

When it comes to selling your property, it’s made infinitely more bearable knowing that you’re taking steps to ensure you receive the best possible price for your home. Most homeowners may consider giving their gardens an aesthetic overhaul or investing in some repairs and home renovations to get their homes looking pristine for the next buyer. Some may even go a step further by replacing their kitchens and bathrooms and even adding rooms in dormant or unused spaces to maximise their returns.

However, one of the most sought-after perks of a home (and one which is often overlooked in favour of cosmetic upgrades) is fast connectivity and reliable network coverage. As more properties get equipped with smart home technology to give homeowners more control over their energy usage, and to make their lives easier, strong network connections need to power these tools. By extension, busy working professionals are embracing the hybrid working lifestyle, adding more demand for fast home WiFi broadband.

The demand for high-speed broadband in homes can also be attributed to people relying on devices, streaming services, and online video games (among other leisure activities) on the same home network. Full-fibre broadband, in particular, is a widely popular and expanding technology that can be an asset to homes of all shapes and sizes.

But can upgrading your home with a faster broadband speed improve your property’s value and possible asking price? The short answer is yes, and this article explains why.

The importance of high-speed broadband in modern homes

The way that many people live and work has become increasingly digitised in recent years. From remote working and e-learning to smart home automation and online gaming, the Internet is now central to many work and leisure activities that take place at home. An independent review by the Department for Digital, Culture, Media & Sport, found that having superfast or full fibre broadband can add approximately £3,500 to a property’s value. Slow Internet speeds are inefficient and don’t provide the productivity or opportunities that full-fibre does. A uSwitch study found that the median average speed in properties has increased, thus fuelling the need for more fibre connectivity.

Full-fibre broadband (otherwise known as Fibre to the Property or Home, or FTTP/FTTH, respectively) is a superfast, stable Internet connection that runs over fibre optic cables rather than standard copper wires. As such, the signal is less likely to deteriorate as it travels the distances needed from a server to a property. Providers can assure faster and more stable broadband speeds (some even surpassing 1 gigabit per second) as a result to customers. 

The benefits of fibre broadband

Here are some key advantages of fibre broadband:

1. Faster speeds: Fibre broadband offers significantly faster download and upload speeds compared to traditional copper-based connections. Rather than using an electrical signal, full fibre uses light signals, meaning less latency and faster delivery.
2. Increased reliability: Fibre-optic cables are less susceptible to electromagnetic interference and weather conditions, resulting in a more stable and consistent connection. Fibre-optic cabling is also virtually impenetrable to attacks, offering greater stability and cyber resilience to users.
3. Higher bandwidth: Fibre broadband provides higher bandwidth, allowing multiple users and devices to connect simultaneously without experiencing significant speed degradation. Fibre optic cabling is less likely to deteriorate in signal quality.
4. Future-proof technology: As technology continues to evolve, the demand for faster Internet speeds will only increase. Fibre broadband is designed to meet these future needs, ensuring that your property remains better equipped.

How fibre broadband can increase property value

Full fibre broadband is the most reliable and sturdy Internet connection type available in the UK today. As such, families can watch films uninterrupted and with no risk of buffering, they can play online games with no lag, and attend video conferencing meetings with complete confidence that there will be no untimely and frustrating service disconnections. Full-fibre and Gigabit-capable broadband, according to Ofcom’s 2023 Connected Nations report, is now available to 57% and 78% of UK residential premises, respectively. Therefore, it’s fair to say that the expectation is that these services will continue to expand in scale and popularity for years to come.

With the increasing importance of high-speed Internet in our daily lives, properties with fibre broadband connectivity can command a higher value in the UK property market. Here are some ways in which fibre broadband can warrant a higher property sale price:

1. Appealing to modern buyers: Younger generations, particularly millennials and Gen Z, have grown up with easy access to modern technology, devices, and systems that rely on fast Internet speeds. Properties with fibre broadband are more likely to attract these types of tech-savvy buyers, particularly if they have larger families.
2. Facilitating remote work: The rise of remote, hybrid and flexible work arrangements has made fast and reliable Internet a necessity for many prospective homebuyers. Fibre broadband means that bandwidth-heavy tasks such as video conferencing and real-time collaboration can be completed with peace of mind and security.
3. Enhancing smart home integration: Smart home technology, including (but not limited to) door locks, alarms, climate control, music systems, and more, relies heavily on a stable and reliable Internet connection. Fibre connectivity powering all of these interconnected devices will be much more efficient and interruption-free
4. Safeguarding your investment: As technology continues to advance, properties with fibre broadband will maintain their value and appeal in the coming years. Those properties without this integration may become less desirable over time.

In the second quarter of 2023, out of 1500 respondents, 50% determined Internet speed as being one of the more important factors when choosing a home for prospective homebuyers. While not as prevalent as property costs or the risk of flooding, it’s clear that Internet connectivity carries immense weight in the home buying decision. 

Preparing your property for fibre broadband

If your property is not yet equipped with fibre broadband, there are a few steps you can take to prepare for an upgrade:

1. Check availability: Contact your local Internet service providers to inquire about the availability of fibre broadband in your area. 
2. Examine wiring: Older homes may require rewiring or upgrading of internal cables to accommodate fibre broadband. Consulting with a professional can help determine if any upgrades are needed.
3. Plan for the installation: The installation process for fibre broadband may involve laying some new cables outside and inside your property. Be prepared for potential disruptions, plan accordingly, and touch up any patches where needed.
4. Research providers: Compare different fibre broadband providers and their service packages to find the best fit for your household's needs and budget.

It’s clear to see that a fast and stable Internet connection has evolved from a luxury into a necessity. Upgrading to fibre connectivity can significantly improve the online experience for everybody in a household, but more importantly, it can add tangible value to a property come sale time by appealing to modern and digitally savvy buyers. Particularly given that the smart home market is also predicted to skyrocket in 2024, your dream home may need fibre sooner rather than later if you want to pique buyer interest.

This article was written by guest blogger, Annie Button.