As one in six homes is now at risk of flooding, the property you want to buy is probably in a flood risk area. With climate change intensifying rainfall patterns, the number of properties at risk from flooding from rivers, seas, and surface water is steadily increasing – and is now at 2.4 million properties, according to the latest government research.
While purchasing a property in a flood-prone area might seem like a risky move, it’s not impossible. It just needs careful consideration, research, and preparation to ensure you’re not buying a (literal) sinking ship.
In this guide, we’ll run through the important aspects you need to consider when buying a house in a flood risk area, including how to assess the level of risk, the potential impact on property value, insurance considerations, and the steps you can take to protect your investment.
First, understand your flood zone type
There are different categories of flood zone types. These are calculated based on their likelihood of flooding (including any current flood defences in place).
These categories are:
- High risk: Properties in these localities have a significant chance of flooding each year (at around 3.3%)
- Medium risk: There’s a 1-3.3% annual probability of flooding
- Low risk: The chance of flooding is between 0.1% and 1% per year
- Very low risk: The annual probability of flooding is less than 0.1%
The higher the flood zone classification, the more risk you will take on buying the property. It’s a lot easier to buy (and get insured) a very low-risk property than it is a high-risk one.
As well as the overall flood risk, you should also consider the type of flooding your property might face, which includes:
- Coastal flooding: Affects properties near the coast
- River flooding: Impacts areas close to rivers
- Surface water flooding: It is usually caused by heavy rainfall
- Sewer flooding: Caused by overwhelmed sewage systems
Knowing the specific flood zone and type will help you assess the potential risks. For instance, a property in a river flood zone with recent flood prevention measures might have a lower risk than it initially seems.
You can check if the property is in a flood risk zone using the government websites for England, Wales, Scotland, and Northern Ireland. We recommend finding as much information as you can about the property and any potential risks before purchasing.
Another thing to note is that socially vulnerable populations tend to reside in higher-risk flood areas (Sayers et al., 2017). The study specifically mentions coastal areas, economically struggling cities, and dispersed rural communities as examples.
As a potential buyer, you may also want to look further into the neighbourhood.
The difference between being in a flood zone and past flooding
Being in a flood zone doesn’t necessarily mean that a property has flooded in the past. Similarly, if a property has flooded before, it doesn’t mean it’s in a flood risk area.
Being in a flood zone means that there’s potential for a property to flood in the future.
Past flooding means that a property has flooded before. It doesn’t mean it’s at risk of flooding again (unless it’s in a flood risk zone).
For example, the garage on our first home flooded one year during heavy rainfall. Our property wasn’t originally in a flood risk area. But the garage flooded thanks to the extra rainfall and a new housing development further up the road that hasn’t upgraded its drain network.
Since then, the water company has upgraded the pipework, and we were able to disclose all this information to our buyers to negate the risk of it flooding again.
We also installed drainage in front of the garage to ensure water drains away and further reduce the risk of flooding. These are the kinds of things you want to look out for as a buyer.
Case in point, properties in urban areas may seem safe from flooding thanks to a relatively reliable drainage system. However, cities are particularly vulnerable to flooding caused by heavy rainfall as it can overwhelm flood control measures.
As reported by the Committee on Climate Change (2019), these have been increasingly common in the past decade. For aspiring buyers, O’Donnell and Thorne (2020) suggest looking at some of the factors that may worsen urban flooding: the amount of rainfall, hotter temperatures, and urban planning.
Find out as much information as possible
Whether the property is in a flood risk zone or has flooded before, gathering as much information as possible is key to negating risks. For best practice, we recommend breaking this down into three key areas.
1. Research flood defences in the area
In February 2024, the government approved £25 million in funding for 40 natural flood management projects in the UK. Depending on the area you’re looking at, a lot of improvement and flood defence work could have been carried out since the last time the property flooded, making it less likely to flood again.
You can find out more information about flood defences in your area by visiting the Gov.UK website or by contacting the Environmental Agency.
2. Enquire about flood defences on the property
You should also ask the seller about any flood defences that they have installed in the property itself. These can be anything from:
- Physical barriers: Such as sandbags, air brick covers, or non-return valves on drains
- Property modifications: Like raised electrical sockets, elevating appliances off the floor, or damp-proof flooring
- Structural adaptations: Such as quick-release or raised doors for easier access during floods
- Storage solutions: For safeguarding belongings from water damage
If any defences aren’t installed, you could also price up how much it would cost to add these into the property – which could also aid in further negations or help you get a better idea of what work will need to be carried out on the property if you move in.
3. Carry out a flood risk report
A flood risk report is a conveyancing report you can request to be taken out on the property. These aren’t essential, but they can be useful as they provide the following information:
- Flood risk with protection measures
- Provided flood protection measures
- Property flood risk information
- Property flood history
- Guidance for property owner/occupier
This report will come at an extra cost to you and, for the most part, will include much of the information you may have already found out about the property and area anyway. If the seller is very forthcoming about flooding information and defences, you could potentially save money by skipping this step.
Alternatively, if you don’t want to find out this information by yourself, paying the fee could be an easy way to save time (while getting guidance and recommendations).
Applying for a mortgage on a house in a flood risk area
It’s more difficult to get a mortgage when buying a house in a flood zone, which could mean worse rates and conditions than buying another property. Like anything else, it’s all about risk.
There are mortgage providers that do cover houses in flood risk areas. However, most require you to have home and contents insurance covering flooding before they complete the application process.
We would recommend seeking advice from an independent mortgage adviser who can help you find a mortgage for the property.
Flood insurance might be required
Although flood insurance isn’t a legal requirement, you might need to take it out to be approved for a mortgage. Of course, some lenders could provide an agreement without insurance, but you’ll likely get a worse deal here.
Getting flood insurance as part of your building and contents insurance can be difficult and more expensive than you might initially think. But it’s not impossible – even if the home you want to buy is in a higher-risk zone.
Even if your usual insurance provider doesn’t offer flood protection, you can turn to Flood Re for insurance. Founded in 2016, Flood Re was created as a not-for-profit system of levies and caps to create a fund to cover homes in flood zones built before 2009.
Before this, Penning-Roswell and Priest (2013) published an article focusing on how Flood Re aims to bridge the gap between the most vulnerable insurers and the cost of high premiums through a cross-subsidy system.
If eligible, insurers can use this scheme to create home and contents policies for prospective buyers.
The impact of flood risk area on the conveyancing process
The conveyancing process for buying a house in a flood risk area will mostly be the same as any other property. However, there can be a few instances where things move slower than normal, particularly if you want to order additional conveyancing searches, such as a flood risk report.
Secondly, any potential issues with your mortgage or insurance could also cause delays, especially if you’re waiting for approval before moving forward with the sale.
Buying a house in a flood risk area may be cheaper
Houses in flood zones tend to be an average of £10,000 to £30,000 lower than expected for the property. The exact loss in value will depend on the risk level associated with the house.
If you’re on a limited budget, buying a property in a flood risk area could be a good way to purchase a bigger property or more desired location that would otherwise be off the menu.
So, there are some potential positives with these types of houses – it’s just making sure that you understand and negate any risk before diving in.
Even if you manage to buy the house at a reduced value, remember that you may not be able to sell it for as much in the future unless the flood risk zone category decreases or it’s no longer at risk of flooding.
While selling a house in a flood risk zone isn’t impossible, it can be more complicated because buyers will be more apprehensive, just as you might be now.
Buying a house in a flood risk area could be worth the risk
Buying a home in a flood risk zone can be a risky choice. But if you do your research and find out as much information as possible, it can be a smart choice to get your dream home (at a potentially reduced value).
Just remember, get as much information about the potential risk as possible by working closely with estate agents, conveyancers, and insurers, which can help you negate some of the risks involved. For any more property advice or help when buying a home, we’ve got all the helpful tips and advice you need here.
