Drivers of coastal real estate demand under flood model predictions in the UK

Flood model predictions are becoming increasingly available online through open access flood risk maps and communications. While these predictions are important for flood management, their inherent uncertainty presents a considerable risk for real estate markets, a leading indicator of macroeconomic performance.  We, therefore, need to understand the factors influencing real estate demand in an era of open access flood model predictions. Here, we investigate the role of gender, education, employment, place of residence, caring responsibilities, income, insurance, location preferences, level of risk aversion, and flood experience and awareness on coastal real estate demand decisions in the UK in response to flood model predictions. Here, our objective is test whether access to flood predictions is a leading driver of real estate demand decisions or whether alternative factors influence how people perceive such predictions. We achieve this by applying an inter-disciplinary approach, involving numerical flood modelling, a novel experimental willingness-to-pay real estate survey of UK residents in response to flood model outputs, statistical and geospatial modelling, and thematic analysis. Our preliminary findings indicate that access to flood model predictions is the primary factor influencing real estate demand decisions, whereas alternative factors considered have negligible impact. Such preliminary findings suggest that we need to re-think how flood model predictions are communicated in order to minimise real estate risks.