The latest research by the property developer, StripeHomes, has found that there is a -5% difference in the average house price paid by homebuyers in areas that have the highest and lowest risk of flooding.
With the wet weather returning this weekend, many areas of the UK have once again found themselves hit by flooding.
StripeHomes looked at average house prices across the UK based on what level of flood risk each local authority has been designated.
In areas at the lowest risk with flooding where 2,500-5,000 homes are at significant risk, the current average house price is £285,351.
This then drops -18% to £233,990 in areas with between 5,000 and 7,500 homes at risk. In areas where 7,500 to 10,000 homes are at significant risk, the average house price again drops by -16% to £193,894.
In the worst-hit areas with the most significant risk of 10,000 or more homes being flooded, house prices then increase. However, at £268,744 they are still some -5% lower than those areas least at risk of flooding.
The impact of flooding seems even more apparent when looking at annual house price growth.
Areas that have the highest risk of flooding (10,000+) have seen house prices increase by just 0.4% in the last year, a jump of just £983.
In areas with a flood risk to 5,000 to 7,500 homes and 7,500 to 10,000 homes, house prices have increased by 2%, up £4,512 and £3,792 respectively.
In areas with the lowest risk of flooding, house prices are up 0.8% growth a £2,127 boost to property prices.
Managing Director of StripeHomes, James Forrester, commented: “The risk of flooding is one that can devastate homeowners by destroying their homes overnight and while it’s no new issue, it’s one that has intensified over the years.
“As a result, there is an obvious difference in the value of properties in both the worst and best areas where the risk of flooding is concerned. A higher risk of flooding is also slowing the rate of house price growth in the worst-hit areas, with house prices climbing at a much slower rate.
“Despite this, homebuyers are still paying a healthy price to live along picturesque rivers, canals and coastlines and so the average price paid in the UK’s worst-hit areas is still well above the national average.
“This is a risk that should be carefully considered when buying in a high-risk area. It’s more than likely you will need an additional budget to prevent flooding or to repair the damage done by Mother Nature and this will be required on an annual basis.
“We’re currently building a development along the River Tyne and flood prevention has been a key area in the design of the building to ensure that those eventually living there don’t suffer due to flooding.”