Environmental searches to identify risk of flooding when purchasing a house are set to become standard, reveals SearchFlow, conveyancing search provider.
With the scale of devastation from flooding witnessed recently, SearchFlow’s latest quarterly survey reveals that 75% of conveyancers now believe detailed checks on flood risks will become a default search prior to purchase. Only 11% believe it will not, with the remaining 14% unsure.
Flood information on properties is included in environmental searches during the conveyancing process. SearchFlow can reveal that over the past six months, only one in five property transactions were carried out with flood reports. However, since the devastating floods over the Christmas period and throughout the winter months, there has already been a 10% increase in flood reports ordered in just one month. This is set to increase further due to the changing sentiments across the conveyancing industry.
Maud Rousseau, Group Marketing and Communications Director of SearchFlow, comments: “It has been patently clear the impact flooding has had on homeowners. Along with the Government, many industries from insurance and conveyancing to environmental agencies have been scrutinised and criticised for their inactions towards protecting homeowners. It is reassuring to see that conveyancers are responding, and many now believe that for added protection and reassurance detailed flood risk analysis should be carried out as a standard service.”
Not surprisingly, homebuyers are also very wary of purchasing a property in a flood risk area. A survey carried out by What Mortgage, a magazine for homebuyers and sellers, revealed that 82% of homebuyers stated they would definitely be put off buying a property if they were told that it was in a flood risk area, 16% were unsure and only 2% said they would not be put off.
The consequences of flooding are clearly devastating for homeowners and, for many, this has been compounded by insurance premiums skyrocketing with exceedingly high excess, or worse, homeowners unable to insure their property against the risk of flood.
To aid those in high risk flood areas, a joint industry and Government sponsored affordable flood insurance scheme, Flood Re, is due to be implemented in April 2016. Itwill enable flood cover to be affordable for those households at highest risk of flooding. With a fixed premium geared to council tax bands, it will help limit the excess and ensure those at risk are protected with buildings and contents insurance.
Maud Rousseau continues: “Anxiety about purchasing a property in a flood risk area is heightened at the moment. Homebuyers are very wise to be cautious.But for many, despite searches revealing there is a risk, it may not happen. Homebuyers simply need to be informed of any risk so they can ensure they are properly protected; just in case.
“The conveyancing sector is in the best position ever to ensure homebuyers are properly protected and fully informed of potential risks prior to a purchase. Leading data search providers for the conveyancing industry are providing the most comprehensive and up-to-date data on flood risk areas, to help ensure conveyancers carry out their due diligence with confidence and reduce the chance that anything will be missed. But vigilance needs to become standard practice throughout the year, as the flooding subsides and we move into the spring and summer months, it is important that this level of caution is maintained.”
This article was submitted to be published by SearchFlow as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
