High risk of flooding equates to low rental growth
With nearly half of its postcodes at high risk of flooding, Halifax in West Yorkshire has seen low rental growth over the past few years according to landlord lettings agency Bunk has found.
Almost 40% of its postcodes are at high risk of flooding, with rents in Halifax increasing by just 0.78% in the past two years and 1.78% in the past five.
Tom Woollard, co-founder of Bunk, said: “When investing in property you need to do your homework on the area as a whole and not just the local property market.
“While nature can be unpredictable, buying in an area with a known risk such as flooding can see your financial return wash down the drain as you spend thousands on repairing your property and getting it back to a state that is fit for purpose in the rental market.”
Some areas are showing rental growth despite flood risks.
A key highlight is Cambridge which has seen a rental growth of 9.08% in the past two years.
Woollard added: “Of course, with risk often comes reward and while there is a notable correlation between the risk of flooding and a lower level of rental growth, investing in an area with high tenant demand, such as Cambridge, can still prove lucrative.”