Analysis by Hometrack has indicated that five per cent of all properties in the UK are at risk of flooding. That forecast will increase by one per cent, or 300,000, by 2050. A further one per cent of housing is predicted to move into this category by 2080.
According to the firm, riverside homes are not the only properties at risk of flooding. Climate change causing coastal erosion, sinkholes and heavy downpours that overwhelm drainage systems can all cause housing flood risks.
Ground risk consultancy Terrafirma has predicted that more than 800 buildings will be lost to coastal erosion within the next 20 years, while nearly 7,000 homes and properties will be at risk of falling into the sea across England and Wales over the next century.
Underground rivers and erosion are also set to leave homes vulnerable to subsidence and sinkholes.
The British Geological Society has estimated that 32,000 sinkholes already exist across the country, with underground water causing dissolution, collapse and erosion.
Spencer Wyer, VP of product and technology at Hometrack, said: “Whilst the effects of climate change are well publicised, the direct impact of climate change on property valuation is a more challenging area for lenders. It’s become critical for lenders to understand the risk to their existing portfolios and many have addressed this.
“However, lenders also need to consider how to stop taking on further risk at origination and the more challenging task is understanding the true impact of climate change on properties impacted by it. This is something we are focusing on to support lenders.”