Half (50%) of homebuyers would pull out of a purchase if their conveyancer uncovered a floor risk designation, new research by Lyons Bowes has found.
With 4.7 million homes across England currently being deemed at risk of flooding, a new survey of 1,090 homebuyers found 77% would not consider purchasing a property in a floor risk area.
When asked, 59% of buyers say they would expect to receive a significant price discount when buying in a flood risk area, compared to an otherwise comparable property in a non-flood risk area.
Following the recent launch of a new flood taskforce by the government one in five buyers (20%) said evidence of effective flood defences would make them feel more comfortable proceeding with the transaction, while 19% would take some comfort from a professional flood risk assessment.
Paul Lyons, managing director at Lyons Bowe Solicitors, commented: “With millions of homes across England falling within a designated flood risk area, buyers may need to face the reality that flood risk is something they cannot always avoid when searching for a property.
“However, it is important to understand that a flood risk designation does not automatically mean that a property will flood in the future. These classifications are there to ensure buyers have access to all the relevant information about a property before making what is likely to be one of the biggest financial commitments of their lives. They are an important part of the due diligence process, not necessarily a reason to walk away.
“The key is understanding what that designation actually means for the individual property. There can be considerable differences in the nature and extent of flood risk, the local environment, the effectiveness of existing flood defences and the measures that may be in place to mitigate potential problems.”
