The study, published in Nature’s , analysed 27 million residential property sales over 28 years to examine how flood zoning, nearby flooding and direct inundation affect house prices and length of home ownership.
Researchers found that flooded properties typically lose around 3% of their value immediately after a flood, with the loss rising to around 10% after 15 years.
Across the flood-affected homes analysed, this equates to an estimated £5.6 billion reduction in property value, or an average loss of £43,347 per property.
The study also found that flood-affected homes are owned for significantly longer than those in areas not exposed to flooding. Nationally, the median length of home ownership was four years in areas unexposed to flooding, compared with 15 years in places that had experienced at least one flood event, and 22 years in the worst flood-affected areas.
Previous research has shown that flooding can reduce property values, but the effect on how long people remain in their homes has been unexplored. This new study suggests the impacts of flooding are not limited to immediate repair costs or short-term price reductions.
Instead, flood risk can leave a lasting financial mark by reducing property values, slowing housing market activity and making it harder for some homeowners to move.
The findings challenge the idea of “flood amnesia” — the assumption that property markets recover as memories of flooding fade. Instead, the research suggests that buyers, lenders and insurers may now be placing more lasting weight on flood history and future flood risk.
The researchers say the findings are particularly concerning for lower-priced homes, where households may have fewer resources to absorb losses, pay for repairs, or relocate away from flood-prone areas.
Dr. Joshua Thompson, who led the research at Ãå±±ÂÖ¼é’s Department of Geography and Environment, said: “These findings are important because a home is often an individual’s most significant financial asset.
“When flooding reduces the value of a property, or makes it harder to sell, it can affect people’s financial wellbeing, restrict their ability to move, and influence decisions about where they can live.
“Our results show that flooding is not just a short-term shock. Flood-hit homes can lose value for many years after an event, and owners may remain in those properties for longer than they otherwise would.”
Flooding is one of the costliest weather-related disasters and, in a warmer and wetter world, future flood events are expected to become more frequent and severe.
The study raises questions for homeowners, insurers, mortgage lenders and policymakers about how flood risk is priced, disclosed and managed in the housing market.
Flooding and related issues could also make it harder for some homeowners to secure affordable insurance or mortgage finance in vulnerable areas — a concern made more pressing by the scheduled end of the UK’s Flood Re scheme in 2039.
Dr Thompson added: “The effects are especially concerning for lower-priced homes. These households may face a double burden: a greater relative loss in property value and fewer options to move away from flood-affected areas.
“But the implications go beyond individual homeowners. If flood risk is being repriced into housing markets more permanently, this could affect mortgage lending, insurance availability, housing market liquidity and the value of assets held by households and financial institutions.
“As climate change increases the likelihood of more frequent and severe flooding, lenders, insurers and policymakers need to consider flood risk not just as a short-term repair cost, but as a long-term financial risk that can affect property values, household mobility and the resilience of local housing markets.”
The paper, 'Flood-affected homes in England lose value and are owned longer than those in unaffected areas', was authored by Joshua J. Thompson, Robert L. Wilby, John K. Hillier, Richenda Connell and Neil Gunn.
The full research paper can be found