3rd
Jan 2016
The North of England’s flooded areas has caused a major inequality of house price increases compared to those at low risk.
A third party mortgage administration provider, has just released details of their analysis of house prices throughout England and unsurprisingly those areas affected by floods have, over the last five years, experienced the lowest house price increases.
Using the Environment Agency’s flood risk data for each postcode, they have found a huge difference in domestic properties’ rising prices for the North West, Yorkshire and Humber regions suffering major setbacks, in relation to those in no risk areas.
In the nine years (2005 -2014), those areas with no noted risk have enjoyed an average house price increase of 17.04%.
The properties in high risk areas in the same period only increased in average by 8.58%. Both Yorkshire and the Humber areas that were at the highest risk just gained 5.91% in value, whereas within the same regions properties designated in safe areas rose by 16.29%.
High risk postcodes areas in the North West region, rose by 6.2%, in stark contrast to those at no risk which shot up by 15.33%.
Andrew Jones, Chief Executive Officer at the company, said: “A flood can devastate a community, but there is a huge hidden cost to those at high risk in much of the North of England. The high risk of flooding for some areas accentuates the regional disparity of property price changes, meaning other, safer areas, particularly Greater London, are seeing far greater increases than areas at risk. As well as the threat of damage and of course injury from floods, households at risk also therefore face a greater chance of falling into negative equity and reduced chances of sale.”
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