London luxury homes face rising heat and flood risks

London’s high-end housing market is facing new challenges from extreme weather, specifically rising heat and flood risks. According to Prime Purchase, a division of Savills UK, many premium properties in the capital are ill-equipped to handle increasingly frequent weather shocks.

Extreme heat is a growing concern, as air conditioning is present in less than 10% of properties nationwide. Additionally, frequent heavy rainfall is increasing flood risks for many homes, including those with luxury basements, making them more difficult to insure. Insurance brokers at Howden Group report that clients are increasingly concerned about the future resaleability of high-end properties due to coverage limitations.

These climate-related issues add to existing economic pressures, such as high borrowing costs. Savills notes that prime central London property values have declined 26% from their 2014 peak. International buyers are reportedly deterred by both the lack of weather-resilient features and complex planning regulations that hinder property upgrades.