The economic advantages of high-speed broadband are significant: according to government research, its Broadband Delivery UK (BDUK) rural programme will yield £20 for every £1 invested.

However, the BDUK programme to deliver high-speed broadband to 90 per cent of the country by 2016 and to 95 per cent by 2017 is well behind schedule and prioritising locations within two miles of a telephone exchange rather than supplying everyone.

At the same time, many rural estates have taken the initiative to diversify into B1 schemes, often by converting redundant traditional farm buildings, which tend to be in attractive locations with plenty of space for car parking. There are now enough schemes of this nature in the countryside for potential tenants to have a choice of where they locate to and, not surprisingly, the availability of superfast broadband informs that choice. Indeed, broadband speed is now only second to the annual rent payable in terms of most prospective tenants’ priorities.

Landowners are therefore building their own high-speed networks, using grant funding where applicable. While the start-up costs are significant – perhaps £20,000-£30,000 in the first year – annuity income from their customers is a new income stream for their portfolio.

Building a high-speed network is certainly worth the investment: our research shows that rents improve on average by £2 to £6 per sq ft once a resilient service is delivered to commercial units.

Further information

To find out more, contact Savills Rural Property Services & Consultancy.