Landlords looking to optimise capital appreciation on their properties may be alarmed at a siren warning from an insurance company.
One Sure Insurance says many property owners risk overestimating their value by thousands.
This follows a recent survey showing that 34 per cent of Britons say the issues surrounding environmental sustainability do not significantly affect their overall purchasing decisions.
The insurer now says there are four major issues, all linked to climate change, they may hit property values.
Subsidence - One Sure says its survey shows that 92 per cent of homebuyers are wary of purchasing a property with a subsidence history.
It says: “Properties with subsidence can be devalued by around 20 per cent and decrease by a further five per cent if the property has been previously underpinned to treat the problem. And it is set to be on the rise as extreme weather changes caused by climate change, such as prolonged dry spells and flash flooding, continue to affect the soil.”
The Climate Change Committee has identified risks to soil health from increased flooding and drought as being in ‘urgency of additional action’; and the British Geological Survey warns that 43 per cent of properties in highly-populated areas will experience subsidence-related issues by 2030.
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Damp and Mould - The insurer claims that over a fifth of British homes have damp, and the number will grow as storms and flooding increase due to global warming.
“Homes that are particularly prone to this issue are older buildings built before 1919 without damp-proof courses, properties with solid stone walls, and coastal dwellings. Potential buyers view a home with mould and dampness as risky because it can create permanent structural damage. Due to buyer hesitation, damp properties with mould can be devalued by 10 per cent or more, depending on the severity of the case” says One Sure Insurance.
Flooding - As some areas in the UK get wetter, more properties might be at risk of flooding via overflowing rivers or heavy rainfall.
The firm claims: “Homes that have experienced flooding can have their price reduced by roughly 40 to 60 per cent. Additionally, if the area is at risk of being flooded again, the property may be tougher to insure or require more repairs, which will scare off future buyers.”
Currently, 3.2m people live in coastal areas at risk of yearly flooding yearly. However, this could increase to 5.4m if temperatures reach 4.3°C by 2100.
In July 2021, the government announced it would invest £5.2 billion over the next six years into flood and coastal erosion schemes. Yet a report by the Climate Change Committee in March 2023 established that more developments continue to be created in vulnerable coastal zones and that there is ‘insufficient’ funding for existing communities to adapt for future climate resilience.
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Energy Efficiency - One Sure says homes with an EPC rating of A or B often see a price rise of 14 per cent over other comparable properties with lower EPCs.
Only 0.2 per cent of British properties manage to achieve the top A rating. Currently, around 60 per cent have a low EPC rating of D or below, and just 29 per cent are rated above-average C.
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If I needed another reason to believe that climate change has been created to make more money from ordinary people who believe in it (or are forced to believe in it), here we are; this is a very good one.
Exactly... it's all a money grab!
Sadly, climate change is real...
Yes, makes it justified to raise insurance premiums.
Where is Martin gibbons
What a load of codswallop
That’s one insurer I’d steer we’ll clear of
Agreed!
You are a wise man, I agree with you
Yes Warming Climate change could well affect property values, too much insulation will make them unbearable.
Mould is caused by lack of ventilation, drying clothes inside and cheap paint (£65. a gallon is good not 2 gallons for £20). false economy.
They yet don’t know the difference between penetration damp & condensation.
Spot on!
And landlords are still being told not to blame tenants “for most cases” of condensation despite surveyors insisting it’s lack of heating and ventilation. Sadly more prevalent in deprived properties
Regarding damp and mould - I had Nigerians in my property. Female tenant with a male who claimed to be the husband but was actually the brother, 4 small kids under 10, no partners living there that I know of (but lots of mail for lots of Nigerians I have never heard of coming), her mother staying there too long term. So I can count 7+ occupants of a 3 bed semi. Washing was dried inside. Damp, mould, windows shut (even when a mould surveyor came to visit). Nothing to do with climate change. All just laziness and ignorance.
And then you were blamed Nick for something entirely outside your control - very unfair.
Ellie,
The Council had to give me a letter... But the inspector found water on the bathroom floor and wet towels on the floor. Was very dismissive of being advised what to do. She didn't impress the inspector so they were 'on my side' so to speak. I still had to fix it all.
It must have cost you a great deal of money to rectify the damage caused - and an enormous amount of worry and stress.
I just wonder how an Ombudsman could decide matters like this, particularly if the Landlord doesn't get an expert report. How much compensation could landlords be required to pay for a problem that they have to repair anyway and which has been caused by the tenants?
It cost thousands. I chose not to add it up! Lots of worry and stress. As you say this is why I am against an Ombudsman. It will all be for the landlord to prove they are innocent.. Pay for the ombudsman to screw you over, and then compensation. Fine too for the government to make out of it?
Terrible that the tenant damage cost you thousands! So sorry!
One wonders if it would be the most unfair tenants who would be ready to go to the Ombudsman - and cause landlords so much worry. At least you are strong and young, Nick, but there are elderly landlords (in fact, the majority) who could well have a heart attack and/or a stroke over the awful worry. They might never be the same again.
Really! A property with a history of subsidence is now only affected in it's value due to climate change, hmm.
Damp and mould - this can be remedied and created often by the occupants.....sorry are they part of the climate change?
Flooding - Same as subsidence, has always affected prices.
Energy efficiency - With interest rates more like the norm now this will affect prices far more than an A/B or a C!
Oh dear! Another gullible muppet has been taken in. The climate has been changing naturally for billions of years. Man made climate change is a scam designed to make certain people very rich and leave the rest of us poor.
Yes, but humans haven't been around for billions of years. So the climate before we arrived would have been too hostile for our species.
Our existence is based on a benign climate, which is now becoming less benign, especially in certain parts of the world.
We can't survive on the Earth as it was 'billions of years' ago.
Annie, that's why we have Elon who will make life for us on Mars.
Annie the climate changes all the time. We are actually coming out of an ice age. It's nothing to do with humans and eating meat etc
On the other hand. People need somewhere to live and the population of this country is not going down. If some properties are affected by these issues (if this is even an accurate analysis) that would be unfortunate, but surely would make all the millions of properties that aren't even more expensive as there will be less choice. Supply and demand.
Two thousand years ago, in the UK and other European countries, temperatures were higher than nowadays; it has to do with many factors. Humans do not cause what is happening; it is undoubtedly not the landlord's responsibility. Let's say Amazon: How much do they pollute? How many carton box packages are delivered daily, and why are they not targeted? Because the corrupt the parliament and the government, easy as that.
My phone went blank this morning no phone all day, I now put sim in this old phone some stuff missing.
That’s technology never seen pick, shovel or trowel go off line.
Your contributions are so valuable, that your comments are really missed, Michael!
So we have ULEZ to save the Planet as well and so much other stuff going on around the World but tiny little us is going to save the Planet.
Something seriously wrong with Mr Khan’s thinking.
So looks like he’s going to scrap diesels that’s only over 6 years based on what ?. There’s a lot more to this scenario than age.
Did they not have the foresight to see this when building those cars only 6 years ago, now they are here it makes far more sense to phase them out over say an additional 10 years years,
I seen an eClass Merc’ in pristine condition with 270k on the clock. However many people only do 8k / 10k per year so seriously is Mr khan going to crush those excellent cars with only 60k on the clock.
Now that the energy has been used to Manufacture those cars including raw materials, electric components and everything else that goes with it. He is now going to use even more energy to scrap them, melt them down and dump what he can’t recycle in the ground causing more problems. Then he is going to use even more energy again to Manufacture a replacement
including more raw materials electrics and everything else .
His ULEZ Policy is off the scales anyway if you pay it doesn’t damage the environment at all and he’s going to save the Planet????.
Anyone seen them fellows in the White Coat’s yet.
Whatever the insurance implications etc., we can’t bury our heads in the sand about climate change. It’s a reality and, while it may not impact much on old geezers like me, it’s our children and future generations who will have to deal with it. And no, the earth was not this hot 2,000 years ago. The last time it was this hot was 120,000 years ago, well before human civilization. The earth was a degree or so hotter then than now and that era had “superstorms” more intense than anything observed in recent millennia and droughts that lasted multiple centuries at a time.
Anyone for a pint?
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