Quarter of properties in UK are at risk to flooding
By |Published On: 23rd January 2012|

Home » Landlord News » Quarter of properties in UK are at risk to flooding

Quarter of properties in UK are at risk to flooding

By |Published On: 23rd January 2012|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

The outlook for landlords who have or are looking to purchase property at risk of flooding is bleak, according to a report from property information firm Search Flow. New and existing landlords must ensure that their property is not in danger of flooding, or face their property becoming uninsurable.

Risk 

It is reported that almost a quarter of properties in the United Kingdom are classed as at risk to flooding. Findings released by Search Flow indicate that up to £214 billion worth of property could potentially be left uninsured, in the face of changing government legislation. [1]

Quarter of properties in UK are at risk to flooding

Quarter of properties in UK are at risk to flooding

 

Until the end of June 2013, the government had instructed the insurance industry to continue to offer insurance on houses vulnerable to flooding. However, it is feared that insurers will begin to up premiums and leave landlords facing sky-high payments.

Bleak

Any property that is uninsured will be greatly difficult to sell or remortgage and will also have to be marketed at a much-lower price. Reports have suggested that some insurance companies are already looking to offload properties at imminent risk of flooding.

Search Flow’s Business Development Director, Richard Hinton, predicts a bleak outlook for landlords who own this type of property. Hinton said, ‘Although buyers will be able to obtain flood insurance for the next few months, the long-term prospects of properties at risk of flooding are potentially bleak.[1]

Hinton went onto say that the possibility of, ‘very high premiums, significant reductions in value,’ and, ‘less access to mortgage finance,[1]’ would all combine to create a negative impact, especially for buyers buying property in places with a high-risk of flooding.

 

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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