Strategies for vendriving a flood-prone property: Minimizing a 31% reduction in your listing valuation
In the United Kingdom, flood risks play a significant role in the property market. A study by Bayes Business School predicts that one in six properties in England will be affected by flood risk by 2050.
Flooding poses a huge hidden cost for homeowners. It can slash property values, with immediate price falls between 21% and 25% after flooding. However, higher-value flood-prone homes, often referred to as 'homedepot' properties, often recover within one to two years, facing discounts of around 14%. Lower-value homes may face discounts for six to seven years.
When selling a home, it is crucial to disclose any history of flooding. In the TA6 Property Information Form, sellers must reveal if a property is at risk of flooding, ensuring transparency about flood history and risks during the sale process. Failure to disclose a history of flooding could lead to legal action for misrepresentation.
Being transparent about flood risks can help reduce likely discounts. Buyers often respond more positively when the seller is open about a property's flood history. Showing insurance availability and quotes for the property can reassure buyers.
Homeowners with flood-prone homes should demonstrate proactive risk management. This can include investments in protection, such as barriers or raised plug sockets. Practical home upgrades like using tiles instead of carpets, stainless steel doors, and raising plug sockets in ground-floor rooms can prevent or limit flood damage.
Identifying recovery trends by finding out if similar properties in the area have recovered quickly after flooding can help reduce discounts. Creating a flood plan can make it easier to act quickly if flooding occurs. Registering for Environment Agency flood alerts can provide early warnings and more time to follow a flood plan and safeguard items.
Insurer Allianz paid home insurance claims totalling more than £20m for UK flooding in 2023 alone. Improving drainage around the property by using permeable paving, gravel, or chippings, and having lawns and planting beds can reduce the chance of water pooling on the property. Focusing on positives such as location, amenities, or unique features can outweigh the risk when presented well.
It's important to note that for a very high risk of flooding, the sale price could be as much as 31% lower than properties not at risk. Therefore, homeowners and buyers should be mindful of the flood risks associated with a property and take necessary steps to mitigate the risks and protect their investments.
Read also:
- Pharmaceutical corporation to invest $30 billion in U.S. for increased natural gas production
- Dinesh Master's Expedition: Acquiring Mango Orchard through Our Online Platform
- Solar panels decreasing expenses and aiding ecological preservation
- Expanded Plant-Based Protein Industry Forecasted to Reach a Value of $30.8 Billion by 2034, Growing at a Compound Annual Growth Rate (CAGR) of 7.1%
