New analysis shows 15.5% mortgages are linked to flood risk
Summary
New FCA analysis suggests 15.5% of mortgage contracts are linked to postcodes with some level of flood risk, based on Environment Agency data. The findings highlight significant regional variation, with parts of London showing elevated surface water flood exposure and Cornwall and Devon showing comparatively low risk. The article also notes the government’s introduction of Flood Performance Certificates and the BeFloodReady platform.
Why it matters
Flood risk can affect property valuation, insurability and marketability, all of which are relevant to residential surveyors advising buyers, lenders and homeowners. It also reinforces the need to consider climate-related physical risk in inspection, reporting and valuation work.
Key points
- FCA research found 15.5% of mortgages are in postcodes with some level of flood risk.
- Inner west London, inner east London and Essex were identified as higher-risk areas for surface water flooding.
- Cornwall and Devon were reported as having the lowest surface water flood risk in the analysis.
- Flood risk may affect insurance availability, resale prospects and mortgage security values.
- The government has introduced Flood Performance Certificates and the BeFloodReady platform.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
