Whether in search of information or diversion, access to the internet impacts countless aspects of modern life. But does it affect house prices too? How far has it come in terms of influencing where we live and how much we’re prepared to pay?

Given the internet’s pivotal role in so many day-to-day activities, the results of our recent research are perhaps surprising. Rather than areas with superfast broadband equating to high house prices, the reverse appears to be true.

Of the 8,651 electoral wards across Britain, there are only 448 where fewer than two-thirds of homes can access superfast broadband. House prices in these wards average £372,577, giving them an average 28 per cent premium over the local authority in which they sit and a 38 per cent premium compared to their regional average.

At the other end of the spectrum, in the 5,505 wards where between 98 and 100 per cent of homes can access superfast broadband, average house prices are just £269,524 – that’s below the £284,629 GB average*, -9 per cent below the local authority average and -11 per cent shy of their regional average.

Not everyone with possible access chooses to take advantage. Almost all (94 per cent) homes and businesses are located in areas where superfast broadband is now available, according to Ofcom, but fewer than half (45 per cent) of homes subscribe. 

As the table below shows, a look at the relationship between those households and house prices confirms that values actually tend to be higher where the proportion of subscribers is lower.

_{Source: Savills, Ofcom, Land Registry, Registers of Scotland}

Among the best connected local authority areas, there are regional centres where the tech industry has been a significant driver of wealth, as well as more affordable locations with aspirations to be part of the digital revolution. So we see Cambridge and Guildford in the top 20, with relatively high average house prices of £530,815 and £556,198 respectively, but they are ‘out-connected’ by Stevenage and Lincoln with respective average property values of £292,477 and £166,953.

^{Source: Savills, Ofcom, Land Registry, Registers of Scotland}

There are variations in ‘off grid’ prices too. Only seven wards have no superfast connections at all – these include the Brendon Hills in Somerset with an average value of £661,000 and Bransholme East in Kingston on Hull with an average of just £101,332.

House hunters are increasingly aware of broadband speeds, but it doesn’t follow that there will be high levels of superfast adoption in areas with high house prices or that people will pay more for a super connected home.

Some of this will be down to relative age. For example, wealthy, older homeowners, while increasingly tech savvy, are likely to be less demanding of download speeds than younger households starting on the housing ladder.

All in all, the numbers suggest that download speed remains more a function of the demographics and aspirations of an area than a driver of house prices.

*Average sale price in the year to end November 2018

Further information

Contact Savills Research