Financial News

  • 23 February 2014, 4:04

Flood Homes Will Regain Value In Three Years

Homes hit by the floods will recover their value within three years, the Royal Institution of Chartered Surveyors (RICS) has claimed.

It said British housebuyers value having a view of water so much they have a short memory when it comes to flooding.

A study of the floods in 2000 - carried out by the RICS and University of Wolverhampton - shows that while property prices fall in the short-term they tend to recover within three years.

Peter Bolton King, from RICS, told Sky News: "Obviously there is a concern at the moment that if my property is flooded, it is going to affect the house price.

"Properties in towns that were affected by flooding [in 2000] rose at exactly the same level as they did in those towns that were not affected by the flooding.

"The positive effects of wanting to live near water actually outweigh the negative effects of being flooded.

"So I suspect that people will still want to buy properties that are close to rivers and the sea and will accept the fact that they might occasionally be flooded."

Maria Leishman, from Wraysbury in Surrey, has a five-bedroom house on the market and is confident the valuation will not be affected in the long-term despite devastating flooding in the village.

"When you go and put so much effort in, and prepare the place to sell, and then something like this happens, your instant reaction is panic," she said.

"We have decided to wait until things calm down but long-term wise, prices will carry on rising."

Many homes in Wraysbury remain inundated.

Jeremy Boyle, a property agent for Frost Partnership, has worked in the Wraysbury area through previous floods and he supports the RICS claims.

"People naturally have questions and want to see the results of the floods," he said. "But even properties which have come very close to flooding, people are still pursuing.

"We've seen no sales fall through as a result of the recent floods."

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