Flood costs may put buyers off according to National Homebuyers
There are fears that properties on flood plains could become unsellable in the future, potentially leading to a surge in people seeking a fast property sale.
[UKPRwire, Tue Feb 19 2008] It comes after the Association of British Insurers and the government revealed repair efforts following the summer floods.
Website Moneysupermarket has pointed out that many insurers are increasing premiums for those in high-risk areas due to the costs associated with covering properties in these regions.
However, there is a real danger that potential buyers will simply avoid purchasing in these regions at all, potentially leading to more owners seeking a fast property sale before the situation develops further.
"For those looking to move home, it is essential to check the environmental agency's flood map and assess the risk to your area, and really consider the flooding danger and financial repercussion living in a flooding zone creates," said Richard Mason from Moneysupermarket.
"From the figures presented by Defra, the average cost of settling a claim for flooding has now jumped to between £70,000 and £200,000 per household. This amount is unsustainable for the insurance industry to bear in the long term unless insurance premiums rise.
"This is especially true if assumed global warming is likely to lead to more frequent incidents of adverse weather in the future," he continued.
Fast property sale expert Julian King adds, "People seeking a fast property sale are encouraged to act quickly in this falling market.
"Selling a property on the open market is taking an average of ten weeks, which does not solve many people's property sale problems".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that agrees to complete at a timescale that suits the vendor. The company is also the leading provider of mortgage rescue solutions such as Sell and Rent Back.
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