A cluster of properties are now virtually unsellable, according to a recent report in the Guardian.
No coming back?
On top of the damage done to an estimated 2,500 businesses, it’s thought that around 16,000 homes saw flooding over Christmas - some for the second time in a decade.
Amongst those worst affected were the Cumbrian towns of Carlisle and Cockermouth, and according to local estate agents property values are falling dramatically. In the most flood-hit areas of Carlisle, for instance, prices are only at 60% of their November values, whilst Land Registry data suggests that prices in Cockermouth have fallen by a quarter over the past 10 years.
As a result, some property professionals are painting a bleak picture, with Simon Brown, a valuer at one of Carlisle’s oldest estate agents telling the Guardian that he “couldn’t see people being keen to buy in these roads again for a good long time, if ever”. Pointing to the recent sale of a large Victorian house in Carlisle he stated that this had gone for £170,000 - around £100,000 less than its original asking price.
Reasons to be cheerful
Despite these worrying trends and tales it would appear that all is not lost. A shortage of properties, Cumbria, Lancashire and Yorkshire’s desirability and an extensive study from the Royal Institution of Chartered Surveyors are all reasons to believe that the flooded properties might see prices recover.
According to the 2009 RICS study ‘flooding only has a temporary impact on values’ and ‘after three years prices returned to their market value’. So, if you are an unlucky landlord impacted by the Christmas floods things might not be as bleak as they seem.
More storms and floods are very real prospect, so if you’re concerned your rental property could be under threat check out our recent article on preventing and dealing with flooding. And, if you do need to make a claim take a look at our step-by-step guide.
Do you own rental property in the affected areas? How have you and your tenants been affected? Let us know in the comments section below.