After the Flood: Housing market liquidity and house prices | Dr Karlygash Kuralbayeva
Dr. Karlygash Kuralbayeva is a Lecturer in Economics at the Department of Political Economy at King’s College London and a Visiting fellow to the Grantham Research Institute.
She will be presenting her paper ‘After the Flood: Housing market liquidity and house prices’
Flooding is the most common natural disaster experienced by many households, and climate change has increased the frequency and intensity of floods in many parts of the UK. This study combines data on individual property transactions from the Land Registry and Zoopla with historical flood records from the Environment Agency, to investigate the effect of floods on the real estate market in England. Our use of Zoopla data restricts our sample to only properties transacted via real estate agents but allows us to investigate market liquidity in the aftermath of extreme events which has been largely overlooked in previous studies.
Our results suggest that the full adverse effects of floods on the housing markets are delayed and the ability to transact (buy and sell) housing units in flooded postcodes steadily deteriorates in the post-flood period. This is also accompanied by a persistent decline in house prices, which can last up to 6 years following the event. The delayed impact of floods suggests the existence of “cleansing” effects on regional housing markets. Our results have important implications for explaining regional disparities in economic development in the UK.
Please email firstname.lastname@example.org with the name of the presenter in order to request the Zoom joining details for this workshop by by 5pm on Tuesday 11th May 2021.