IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2009_283.html
   My bibliography  Save this paper

Estimating the Impact of Floods on House Prices: An Application to the 2005 Carlisle Flood

Author

Listed:
  • Gwilym Pryce
  • Yu Chen

Abstract

It is estimated that two million properties and five million people are located in areas at flood risk in England and Wales, with nearly 100,000 homes and businesses at risk of flooding in Scotland. These numbers are anticipated to rise significantly as a result of climate change which the IPCC and UKCIP estimate will cause increased winter precipitation, rising sea levels, and greater frequency and prevalence of storm surges and extreme weather events. This paper explores how the housing market responds to such intensifying flood risk. In particular, we model the impact of flooding on house prices. This is an important effect to consider because the maintenance of property values matters for both individual home owners and community as a whole. House prices are also a gauge of human wellbeing (holding constant property attributes). Whilst the existing literature focuses on empirical studies of the effects of flooding on house prices, primarily drawing on data from the USA, there is a dearth of research grounded in sound economic theory and robust econometrics, particularly in the UK context. This paper seeks to address some of these shortcomings using UK data.

Suggested Citation

  • Gwilym Pryce & Yu Chen, 2009. "Estimating the Impact of Floods on House Prices: An Application to the 2005 Carlisle Flood," ERES eres2009_283, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2009_283
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2009-283
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2009_283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.