|
High risk of flooding
crippling value of many homes in North of England, HML finds
THE "hidden cost" of
flooding in the North of England has been uncovered by the UK's leading ⅓
party mortgage administration provider, HML.
In a comparison of the category of risk of flooding assigned to each
postcode by the Environment Agency and average house price sales in each
area, HML found that the value of many homes in the North of England has
been crippled by a high risk of flooding.
Its analysis found that properties classified as at high risk from flooding
in the North West and Yorkshire and Humber regions of England increased in
value half as fast between 2005 and 2014 than those at no flagged risk
(17.04% compared to 8.58%).
Andrew Jones, Chief Executive Officer at HML, 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."
In Yorkshire and Humber, the difference was starkest, with the value of
properties in high risk postcodes growing at 5.101% compared to 16.210% for
no flagged risk.
In the North West region, the value of properties in high risk postcodes
increased at 6.20% compared to 15.33% for no flagged risk.
By far the greatest rate of increase for property values was in Greater
London, where the value of properties at no flagged risk of flooding have
increased 100.71% during the same period; more than 10 times faster than the
combined average for high risk properties across Yorkshire and Humber and
the North West.
HML manages around £32 billion of assets across the UK and Ireland, and uses
advanced analytical instruments and its knowledge of mortgages and property
to develop a deep insight into understanding trends within the market,
particularly on negative equity, repossessions, arrears and interest only
mortgages.
The company employs over 1,200 people across the UK and Ireland, with around
650 based at its headquarters in Skipton, Yorkshire.
The company recently committed itself to helping Yorkshire become the
capital of a new "Northern Powerhouse" through substantial
investment in existing staff members and the specialist training of new
recruits to help the region grow and prosper. |
