The apparent increase in frequency of extreme weather events and resulting floods will be of considerable concern to property investors, both in relation to the potential purchase of new properties or development sites, and in relation to their existing property portfolio.
Of additional concern may be the fact that many investors may have numerous properties in the same area and therefore the effects of flooding and potential effect on their investments will be magnified and potentially catastrophic.
Investors may struggle to lease properties or to sell them if they are in locations known to be at risk of flooding. If flooding occurs to tenanted properties owners may suffer significant loss of rental income if the property cannot be occupied. They may additionally incur the cost of providing alternative accommodation for their tenants.
Investors will therefore be keen to inform themselves as to the risk of flooding, both in relation to the potential acquisition of properties, or in relation to existing properties. Useful information is available from a variety of sources including the Environment Agency. If considered justified a specific professionally undertaken flood assessment can be obtained.
If such enquiries are pursued prior to the purchase of a property the investor may ultimately decide that the purchase is simply too risky and elect to buy property elsewhere.