Hometrack launches portfolio flood risk assessment tool

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by Gill Montia

Hometrack, which provides information to the UK’s housing and mortgage industries, has launched a new flood risk assessment tool for residential property portfolios.

The system uses a combination of available flood data in conjunction with Hometrack’s automated valuation model.

It allows users to run their portfolios through specific scenarios such as the likelihood and damage to residential properties should a certain river burst its banks or heavy rainfall occur in a specified area.

The results can be viewed either as data or in mapping format and the method of screening can produce a complete review of a residential portfolio in a matter of hours.

Oliver Hughes Hometrack’s Director of Capital Markets points out: “It is becoming increasingly important for all holders of residential property and property risk to identify those properties subject to the greatest risk of flooding.”

He adds: “A flood damaged house will see a sharp drop in value and in many cases will be unsellable until it has been made good. Being able to identify those properties at the greatest risk will enable more efficient portfolio management, a better understanding of value at risk and an opportunity to manage and divert such risk before it is too late.”

According to Environment Agency data, two million properties housing five million people across England and Wales, are at risk of flooding.

The summer of 2007 saw the UK’s wettest May to July since records began, resulting in some 49,000 households sustaining flood damage.

Further flood warnings this winter have only added to the urgency of upgrading the UK’s flood defence system.