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Erosion/Coastal house prices

Journalist: Joe Wright, Telegraph

ended 15. April 2024

Hello, at the Telegraph we're after experts to talk about what impact the ever-growing threat of coastal erosion has on house prices.

If there are any experts in this field, that would be great.

- how does erosion etc affect house price? Are buyers still willing even though they know the risks?
- Is there a big discount right on the edge? and then less of a discount the further you get from the collapsing cliff? 
- what do surveyors say? Will banks not lend on homes that are too close to the edge?
- Are there particular danger zones where lending (and therefore presumably house prices) are affected?
- Can you get insurance on your house for this?
- Do people buy anyway if it's a bargain thinking they will have more time before it comes crashing down?
 

2 responses from the Newspage community

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Tracey Dixon
Owner/Broker at Pure Mortgage and Protection
Erosion can definitely bring down the price of a house. Decreased land area: As the land erodes, the actual property size shrinks. This reduces the overall value of the property. Future damage risk: Erosion threatens the foundation and overall stability of the house. Buyers are less willing to pay top dollar for a house that may literally fall into the sea in the future. Insurance issues: Insuring a house in an erosion zone can be difficult or expensive. This adds another layer of discouragement for potential buyers. Loan Restrictions: Banks may be hesitant to lend on houses deemed too close to the eroding coastline due to the property's decreasing value and potential future uninhabitability. However, there are cases where buyers are still willing to take the risk: Sea view premium: Some buyers value the oceanfront view so much that they're willing to overlook the erosion risk, especially if the erosion timeline seems far off. Mitigation efforts: If the area has a good seawall or othe
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James Bull
Mortgage Broker at JB Mortgages
I have done a few mortgages for clients wanting to purchase next to the coast / riverside. The appeal is obvious as you would be buying a property with spectacular views. Whether or not a mortgage lender will lend on such a property is usually down to the surveyors comments. In many cases the surveyor has commented the property is not suitable lending, so some sales have certainly fallen through due this.