The recent floods that have hit the UK have rung alarm bells with home owners/purchasers and developers alike, and the need to place even more emphasis on overcoming potential flood risks in new homes has become apparent...

Mark Wilkinson, Knight Frank Residential Development takes a look at the situation and at how developers can tackle this issue.

“Government policy on development and flood risk is set out in Planning Policy Statement 25 (PPS25). The policy aims to ensure that flood risk is taken into account at all stages in the planning process to avoid inappropriate development in areas at risk of flooding and to direct development away from areas at highest risk.

“In cases where proposed development occurs in areas at risk of flooding, the policy requires a flood risk assessment to be undertaken. With the unseasonally wet weather that we have experienced in June and July this year, there has been some widespread flooding.

“The effect of this has been to increase the risk profile such that larger and wider areas may now be captured by the “at risk” category. This will have an impact on the extent and design of residential scheme in affected areas.

Floods affecting demand?

Mr Wilkinson continued: “It is usually a planning requirement for housing developers to locate all habitable rooms in a new development in a flood plain on the upper floors. This often means that the ground floor has to be set aside for garaging, utility rooms or storage. There is therefore an effect on building form and urban design.

“Generally, there seems to be limited evidence to suggest that flood risk negatively affects demand and sale prices. This is because locations adjacent to waterways, rivers and the sea tend to attract premiums. Knight Frank is aware of new-build riverside schemes in Maidenhead, along the River Thames, that have set record values at the time of sale, approximately ten years ago.

“The design provides ground floor car parking with the accommodation on upper levels. Since construction, the ground floor parking areas have been flooded a few times and this week has been especially bad. Fortunately the design has meant that living accommodation has not been affected, but the reality is that this is little comfort for residents who may have had their cars parked at the property or have had things in storage in these areas during the floods.

An urgent need to resolve ‘flood risk issues’

Mr Wilkinson concluded: “There is increasing awareness of potential flood risk from both home buyers and the development industry. Knight Frank LLP is working on a large regeneration site in South Dagenham where considerable resources are being allocated to resolve flood risk issues.

“The development will require the construction of a Balancing Pond to contain any flood waters. To prospective purchasers of completed units at the scheme, the pond may appear to be a landscaping feature.

“It is, however, essential to unlock development potential and ensure any flood risk is removed. The costs associated with such flood alleviation schemes are, however, significant and in many cases can only be funded in conjunction with large-scale development projects.”