Flooded homes in Carlisle selling for more than expected

But the good news is that the properties are actually selling for 10-15 per cent above the guide price.

And when the insurance settlement is added in, owners are walking away with more than they thought likely.

Colin West, an auctioneer who has sold the majority of flood-damaged properties in Carlisle, said: "People are taking a hit but it's not as large as they may have feared if they've been insured.

"We've sold about 36 flooded properties through auction and they've been all kinds of homes. The majority were in the Warwick Road/Greystone Road area and were mostly terraced houses although we've sold quite a number of semi-detached homes in the Eden Park Crescent area.

"If a typical, small, two-up, two-down terraced house was £100,000 prior to the floods, it would be catalogued at £50,000 to £60,000-plus and sell for £60,000 to £70,000 typically.

"This would be combined with the insurance settlement, which could range from £20,000 to £40,000, depending on the size of property - your typical insurance settlement on a two-bedroom property would be about £30,000."

Mr West, of Auction House Cumbria, said that because so few properties have come to the market that have been refurbished under insurance cover, it was too early to tell what prices they could fetch, although he believed it would be nowhere near pre-flood values.

"People are worried about the risk of flooding again and the difficulty getting building insurance," he added.

"The sales are very sporadic and a pattern hasn't been established yet as to where the prices are coming in, compared with pre-flood values."

Adrian Tod, director of Hayward Tod Associates, said: "There are one or two properties creeping back to the market that have been refurbished but their values are slightly down, probably about 10 per cent.

"The market hasn't recovered for properties that have been flooded. I think it will take a few more years before such memories fade, buyers feel more confident and prices recover as they did after previous floods."

David Hogarth, of Cumbrian Properties, said: "We are seeing positive signs of recovery. A recent sale of a refurbished house at full price in the Warwick Road area is a good sign that there are still purchasers for townhouses in the flood area.

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"It will take time for prices to recover, as it did last time, but Carlisle people are very resilient and the Warwick Road area in particular will always be sought after due to its convenient location and the period properties."

Mr Tod noted that flooded properties sold without being refurbished have lost at least half their value, probably more.

"They have been severely hit. A three-bedroom terrace in the Warwick Road area pre-flood would have been around £175,000. Selling at auction it would be £70,000 but that's an unrefurbished flood-damaged property."

There is also the human cost of flooding to be taken into consideration, Mr Tod said.

"People think that if the flood defences have failed once, they could fail again. Those people who can't face living in their homes and who just want to get out will sell at whatever the market will offer. That's across the range.

"We had an individual who was flooded in Lower Stanwix and for a long time she was talking about not going back into her home. She has now decided that she will but I think she will sell - perhaps not immediately future but in the medium term.

"Others will think that they can't live with the fact that it may happen again and at this time of year, the prime time, it's worse, it's looming large."

The risk of flooding has also affected how the rest of the UK views living in Carlisle.

Mr Tod said: "People having to move here from outside the area always mention the flooding - it's one of the first questions they ask. There's a much greater awareness among out-of-area buyers."