36,700 Mortgaged Irish Homes at Flood Risk, Central Bank Warns

A Central Bank study reveals that up to 36,700 mortgaged homes in Ireland are on land at risk of flooding, making them financially vulnerable. This number is projected to increase significantly due to climate change.

Under a mid-range climate scenario, with a 20 per cent rainfall increase and 0.5-meter sea-level rise by 2100, the number of households in «high-likelihood flood zones» will jump over 50 per cent, from 50,000 to 78,000. Currently, between 6,450 and 36,700 mortgaged households (1.2 per cent to 6.9 per cent of all mortgaged homes) are in these high-risk areas, with the midwest region showing the highest incidence at up to 11 per cent of mortgages.

Flood events can lower property values, increasing credit risk for lenders due to higher loan-to-value ratios. The study also highlights an «insurance gap,» noting that one in 20 properties has limited access to flood insurance. This lack of coverage increases vulnerability for both borrowers and lenders, as uninsured properties pose elevated credit risk.

Last year, storms and flooding, including Storm Éowyn which caused a record €300 million in insurance payouts, damaged homes and infrastructure across Ireland. Experts warn that extreme flooding could occur annually by 2100.