New study of flood risks puts land values in danger

Jun 27 2007 by Tony McDonough, Liverpool Daily Post

DEVELOPERS are being warned that the land they hold on Merseyside could be re-categorised as a flood zone, with a potentially disastrous effect on the value of the sites.

The warning comes in what has already turned out to be the wettest June on record in the UK.

The threat is related to the Environment Agency's continuing programme of flood risk assessment, which is passing largely unheralded by the UK property industry.

Liverpool-based civil and structural engineering firm Sutcliffe, which has been studying the programme, says the Environment Agency’s conclusions could also be bad news for homeowners by forcing up insurance premiums and affecting house values.

"The flood risk programme is a response to global warming,” said Sean Keyes, director of Sutcliffe. “In most cases 'at risk areas' have been extended and Liverpool is no exception. Larger swathes of the city are now in flood risk zones.

“It will come as a surprise to many to find their property is in a flood area but in many ways it shouldn't. Liverpool is riddled with rivers and streams, many of which are now underground. These are all potential flood hazards.”

Sutcliffe, which is based in Harrington Street, works on a number of high profile schemes in and around the city, and the company believes the financial implications of the reassessment are huge.

Mr Keyes added: “Land purchased for development purposes could now be in a flood zone with little or no chance of gaining planning permission. This will have obvious effects on the land value.

“For some developers, all may not be lost. The Environment Agency has taken a broad brush approach with its assessments, and a case can be made for taking areas out of at risk zones.

“We have been employed by a number of developers to carry out detailed surveys, using the most up to date computer modelling techniques.

“This can measure the topography of a site and the flow rates of local rivers. Information from this can be used to challenge Environment Agency decisions and prove areas aren't at risk of flooding.”

The £30m Environment Agency website offers details of all the at risk areas in the UK. Areas at risk in Liverpool include parts of Childwall, Aintree, Tuebrook, and Fazakerley.

tonyymcdonough