Thanks to the data and methodology, the research overcame the limitations impacting previous studies
Previous research into the impact of flooding on property prices has been limited by several factors. For example, the Belanger & Bourdeau-Brien 2018 report captured flood risk based on a property’s distance from water. However, the McKenzie & Levendis 2010 study of Hurricane Katrina found that property elevation was an important factor in determining risk.
In addition, separating the price impact of a potential flood risk from the property price has challenged earlier projects: while properties close to the coast have a higher risk of flooding, coastal locations often attract a price premium which outweighs the risk of a future flood event.
By leveraging Twinn climate risk scoring methodology
and Rightmove property price data, the Bayes Business School researchers unlocked new and detailed insights into the dynamics between flood risks and property prices in England. Overcoming limitations encountered by previous studies, the research presents evidence of flood risk price effects on residential properties at an individual level.
Sophisticated and precise, our methodology enables quantification of the likelihood of pluvial, fluvial and tidal flooding at property level based on different emissions scenarios. As such, the report marks a turning point for the property market.