An estimated third of employees spend at least some of their week working from home with high speed broadband rising up the criteria list for new house buyers. Evidence suggests that broadband speeds could affect the price that buyers end up paying for their next move.
An analysis of average house prices and broadband download speeds by local authority reveals that buyers spend, on average, 17% more for properties in areas with superfast broadband compared to areas where average speeds are less than 25 Mbps.
Some of this will be related to where broadband providers have historically focused their investment, ie, in more affluent areas, but with the major providers increasing their coverage, this effect will become more diluted. Indeed, the Government has committed to provide superfast broadband (at least 24Mbps) to at least 95% of UK premises.
There are a myriad of factors that affect local property prices but the influence of broadband speeds should not be underestimated with its importance to buyers set to continue to increase.
We would like to take this opportunity to thank you
for your continued support which has made 2017
such a successful year
and we look forward to working with you
in 2018 and beyond.
After months of hard work, our new website finally went live over the weekend and is looking fantastic! Why not have a good look around and see what amazing new features and information are included.
Our new banner has arrived today ready for tonight, and it looks great!! We are proudly sponsoring the Pink Wig event which is part of Falmouth Week and raises funds for vital research projects, the best care for breast cancer patients in Cornwall and a safer future for the next generation.
Two weeks on, and the world (or at least the UK) seems to be getting to grips with the implications of our historic vote. The trains and buses are running as usual, cash dispensers are still working, and some of the frankly wild speculation is dying down (remember the talk of ‘emergency budgets’?). Marcus Whewell, CEO of The Guild, explores the uncharted territory and some of the more intelligent predictions that are emerging.
The Bank of England have taken early action to boost liquidity, ensuring that the banks can continue to lend. It is also quite likely that interest rates will fall to historically low levels over the next few weeks as they seek to retain consumer confidence and spending levels. This may not necessarily be passed on to mortgages in the short term, but it does suggest a continued period of very competitive lending for the next 12 months.
George Osborne has also relinquished his target of balancing the budget by 2020, and this is another clear indication that the Government will continue to ‘pump prime’ the economy to help stave off any recessionary influences.
As sterling falls, exports become cheaper, providing a valuable fillip to manufacturing, maybe boosting employment. However, the costs of imports will rise so there should be a gentle upward trend in inflation, meaning the Bank of England will need to maintain a careful watch. This, in turn, may put some upward pressure on interest rates from 2017 onwards (as this is the Bank’s main lever to influence its key objective – control of inflation).
Unusually, we are experiencing both inflationary and deflationary pressures simultaneously in the UK economy, and these should balance out to provide a steady state economy for the next 18 months.
I believe that we will see very different performances for residential and commercial property.
Commercial may suffer quite significantly, as businesses look to reduce risk and costs, and delay major new ventures. This is already being highlighted by several investment houses suspending their property funds, which are mainly vehicles for pooling commercial investments. Lease costs may well fall as owners, such as pension funds, try to prevent voids or empty buildings. Owners may also have to sell property below book value to meet other commitments, which might put pressure on commercial property prices across the UK. This is unlikely to adversely affect the major banks, as they have deliberately reduced their exposure to this sector over recent years.
In the case of residential property, we can expect further price rises as demand continues to outstrip supply, although maybe moderated downwards to between 2% and 5% p.a. If the larger developers delay some big projects (as they wait to assess future yields and construction costs rise with shortages in labour and increases in material prices), this will further restrict the number of homes and again tend to nudge prices up.
Value My Property