Hometrack’s Climate Change Risk Assessment product will bring together critical risk components into a single lender-focused product, powered by a unique combination of climatology expertise from Ambiental, alongside Hometrack's valuation and property insight.

The product will identify the physical and transitional risk to property, both today and using future scenario modelling. This will be aligned to the Bank of England climate strategy by building awareness of climate related risks and identifying where they exist within a property portfolio, while increasing understanding of the impact and opportunities for lenders.

It will assess and manage risk by translating what climate change means for lenders, such as defining the financial impact of climate change risk on a property’s value, as well as supporting strategic decision making and helping to shape risk policy.

The product will also inform investment decisions through integrating climate change risk into automated business operations, such as at mortgage originations.

The Climate Change Risk Assessment will be delivered through existing and integrated platforms, at origination and through portfolio assessment, enabling risk identification and decision management for lenders.

As well as the above, the product will model the impact of climate change on property values with the use of Hometrack’s unique AVM.

David Ross, managing director of Hometrack, said: “climate change is a very real risk of material consequence. Average temperatures continue to increase and scientists and governments are looking at ways to reduce that impact. Regardless of how this plays out, every scenario will have ramifications for property values and mortgage markets.

"Along with transition risk brought about by emissions, lifestyles, transportation and energy, there are already physical risks that are manifesting as a result of climate change. Those risks show themselves in property desirability, safety and subsequently saleability and value.

“Our identification of that risk begins with identifying risks to the lender at the point of origination and portfolio to help them understand where their property is and what the risk of their location is.”

Rob Carling, Channel Sales Manager at Ambiental added: “we are delighted to be involved in this partnership with Hometrack in the development of their climate change product offering. It is essential that mortgage lenders take action now and consider the impacts of climate change on their portfolios for long-term planning. We have come a long way since launching FloodFutures, the first UK climate change model, back in 2017, and this relationship marks the start of an exciting new phase of further enhancement for the product”.

Ambiental continue to pioneer development of climate change related data insight for a range of hazards including flood, subsidence, coastal erosion, EPC data and more.

For more information contact:

Rob Carling, Channel Sales Manager,
E: rob.carling@rhdhv.com