A recently published report suggests that up to 430,000 households across England could be trapped in unsellable, flood-prone properties on punishing mortgage rates by 2050. The report, Flooding the Market: The Climate Mortgage Trap, was produced by the think tank Public First on behalf of the UK Sustainable Investment and Finance Association (UKSIF). It warns that rising flood risk threatens to destabilise not just individual household finances but the wider housing market.

The report paints a clear picture. As insurers either hike premiums or withdraw coverage from properties which are susceptible to floods altogether, mortgage holders reaching the end of fixed-rate deals may find themselves forced onto standard variable rates. These currently sit at around seven per cent. That shift could mean paying roughly £4,000 more in annual interest. Uninsured homeowners also face potential repair bills of up to £45,000 after storm damage.

The constituency of Boston and Skegness was highlighted as having the highest concentration of at-risk mortgaged homes, with 8,650 properties identified.  This has earned the constituency the unenviable title of “climate mortgage prisoner capital of England.” The rest of the top ten includes Thurrock, Goole and Pocklington, South Basildon and East Thurrock, and Southport.

Property values in the worst-affected areas could fall by over 20%, while …