Quarter of properties in UK are at risk to flooding
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
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.
[1] http://www.justlandlords.co.uk/news/Risk-of-Flooding-could-be-Critical-for-Insurers-1085.html