Hometrack has launched a climate change risk product, which it says helps lenders raise their understanding of the impact of a changing environment on property valuations.

The tool assesses how energy data, flood and ground risks, affect valuations.

The property data firm adds this allows lenders to incorporate “key climate change metrics into their mortgage origination strategies in real time”.

It says its flood information provides river flow, rainfall, storm surge and climate change predictions.

Its ground risk data studies movement, mining, erosion and landslide calculations.

Energy assessments take into account energy performance certificate ratings.

The firm says the tool “translates geophysical climate risk into easily understandable direct risk to property for lenders”.

It adds the service is delivered through a lender’s “integrated platforms, at origination and through back book portfolio assessment”.

The tool also meets increasing regulatory standards required from the Bank of England, says the data group.

Hometrack director of analytics and consulting Theo Brewer says: “Our solution is designed to provide lenders with a forensic view of climate change risk, combining scientific expertise across the flood, ground and property value modelling spaces with the ability to seamlessly integrate data and decisioning capability into their mortgage and credit risk platform.”

“Our solution extends beyond identification of where physical and transitional risks are located now and in the future, to understanding how property value, desirability and saleability may also be impacted.”

Brewer adds: “The addition of climate change events data and the ongoing study of how properties have responded to historic events puts Hometrack in a unique position to accurately solve for the next key question for lenders: what is the expected impact to property values?”