Flooding and damage to property foundations thanks to climate change are an increasing risk for home owners and may have a considerable financial impact on house prices, the financial services watchdog AFM said on Tuesday.
Climate change will lead to more extreme weather, bringing with it heavy rain and long periods of drought which in turn increase the risk of floods and will damage foundations, the AFM said in a new report.
In total, one million homes may have to cope with foundation issues by 2050, a risk which cannot be insured against. Repair costs average €54,000 but could add up to €100,000, the AFM report said.
Some 59% of the Netherlands is also vulnerable to flooding, and this is only party insurable, the AFM report said.
The AFM says that sellers should be required to give buyers accurate information about the foundation and flooding risks they could face which will, in turn, impact on house prices.
“It would be best if we had some sort of climate label so that people buying a property could see the potential risks and take that into account in the price,” AFM director Laura van Geest said. “It does not matter if it happens via self regulation or the government, as long as it happens.”
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