Business
The influence of climate change on home insurance and mortgage decisions

CLIMATE change is undeniably altering the landscape of home insurance and mortgage decisions and, as risks increase, both industries are adapting, leading to higher costs and a stricter criterion for homeowners.
Pete Mugleston, MD and Mortgage Expert at www.onlinemortgageadvisor.co.uk, discusses how these shifts are impacting decisions around home insurance and mortgages.
Climate change isn’t just changing our weather patterns, it’s shaking up the housing market, especially when it comes to home insurance and mortgage decisions. With the UK facing increasing risks from floods, storms and coastal erosion, homeowners and financial organisations are rethinking their strategies.
Flooding has become a significant concern across the UK with more frequent and severe storms rendering areas once considered safe, at risk. This shift has substantial implications for home insurance. According to the Environment Agency, approximately 5.2 million properties in England are at risk of flooding*. This number is expected to grow making it increasingly difficult for homeowners in these areas to find affordable insurance. For those already living in flood-prone zones, this can result in a significant rise in insurance costs, sometimes making their homes uninsurable through traditional means.
For homeowners in high-risk areas, insurance premiums are skyrocketing. Insurers are setting stricter terms and conditions often requiring homeowners to implement flood defences for coverage. Some insurers are creating exclusion zones where they simply won’t provide coverage at all. This trend is particularly noticeable in coastal areas experiencing significant erosion and increased storm activity. To address this gap, specialised insurance policies are emerging. These policies, often more expensive, cater specifically to homes in high-risk areas, offering coverage traditional insurers might decline.
Lenders are also becoming more cautious about approving mortgages for properties in high-risk areas. If a home is uninsurable its value drops, making it a risky investment for lenders. As a result, lenders are scrutinising flood risk assessments more closely and may require proof of insurance before approving a mortgage. In some cases, they may refuse to lend altogether.
Properties in high-risk areas may see decreased valuations, which can affect the loan-to-value ratio making it harder for buyers to secure favourable mortgage terms. On the other hand, areas deemed low risk are seeing increased demand driving up property prices. Buyers and lenders alike are prioritising these safer investments, sometimes at the expense of affordability.
As climate change progresses, these trends are likely to intensify. Both insurers and lenders are investing in better predictive models to accurately assess climate risks. Homebuyers and homeowners need to stay informed about these risks and incorporate them into their long-term planning and keep up to date with the latest climate risk assessments, understanding how they might affect the area is crucial. It’s also important that homebuyers and homeowners acknowledge the ease that implementing certain flood defences and other protective measures may offer when trying to obtain insurance and a mortgage. Finally, considering the long-term feasibility of staying in a high-risk area is vital as, in some cases, relocating to a lower-risk area might be the most beneficial financial decision.
Business
£20m investment to secure future of Fishguard Port

Largest ferry to visit Fishguard as Stena Line commits to long-term upgrade
FISHGUARD Port is set for a major upgrade after ferry operator Stena Line announced a £20 million investment to replace the town’s ageing linkspan bridge.
The new infrastructure, described as “overdue” by the company, will provide increased flexibility and secure the long-term viability of the Pembrokeshire port, which serves the route to Rosslare in the Republic of Ireland.
Stena Line said it hopes construction on the new drawbridge-style linkspan will begin in 2026, with completion targeted for 2027. The company said the investment demonstrates a commitment to Fishguard for the next “30 to 40 years”.
Boost following Holyhead closure
Fishguard saw an unexpected increase in traffic in December 2024, after Storm Darragh damaged berthing terminals at Holyhead. The disruption meant freight traffic and ferries were redirected to Fishguard to relieve pressure on the Irish Sea route.
During this period, the Stena Adventurer — the largest ferry ever to visit the port — docked in Fishguard for the first time.
Ian Davies of Stena Line acknowledged that the new investment was long-awaited: “It’s overdue,” he said, but added that the upgraded linkspan would allow far more flexibility for vessels and scheduling in the years ahead.
Abandoned plans revived
A similar project to upgrade the port was cancelled in 2018, raising concerns locally about Fishguard’s future as a ferry terminal. At the time, tenders had already been invited for the build, but the scheme was scrapped unexpectedly.
The current single-lane linkspan, which dates back to the early 1970s, has been nearing the end of its working life for some time. Its replacement is expected to bring the port up to modern operational standards and support future vessel deployments.
Stena Line currently operates two roll-on roll-off ferry services per day between Fishguard and Rosslare.
The investment announcement has been welcomed by port users and the local community as a sign that the port will continue to play a key role in west Wales’ transport and economic infrastructure.
Business
Celtic Holiday Parks in administration as buyer sought

Popular holiday sites at Narberth and Amroth continue to trade
CELTIC HOLIDAY PARKS, the family-run company behind two of Pembrokeshire’s best-known holiday parks, has gone into administration.
The award-winning business operates Noble Court Holiday Park in Narberth and Meadow House Holiday Park in Amroth. Both sites remain open and trading as normal, with all employees retained and bookings unaffected while a buyer is sought.

High Court appointment
The administration was formalised on 27 May 2025 by the High Court’s Business and Property Court under case number 000020 of 2025.
Joint administrators Alistair Wardell and Richard Lewis of Grant Thornton UK LLP were appointed to oversee the process. Their Cardiff office, based at 3 Callaghan Square, is handling all enquiries.
Statement from the administrators
A spokesperson for the joint administrators at Grant Thornton said: “Alistair Wardell and Richard Lewis of Grant Thornton UK Advisory & Tax LLP, 3 Callaghan Square, Cardiff CF10 5BT were appointed as joint administrators of Celtic Holiday Parks Limited on 27 May 2025.
“The joint administrators are continuing to trade the company’s business whilst a buyer is sought, and the company’s employees have been retained to support this strategy.
“We confirm that, unless customers are contacted and advised otherwise, their bookings will go ahead and access to the parks will continue as normal for owners of caravans and lodges.
“Should you be interested in acquiring the company’s business and assets, please contact the joint administrators’ team.”
Years of investment and accolades
Celtic Holiday Parks was founded in 2003 and led by managing director Huw Pendleton, who has overseen more than £6 million of investment in the parks over recent years.
Both sites offer a range of high-quality accommodation, including static caravans, glamping units and luxury lodges with hot tubs. Meadow House also includes an indoor pool, gym, restaurant and access to the Pembrokeshire Coast Path.
The business secured a six-figure loan from HSBC in 2020 under the UK Government’s Coronavirus Business Interruption Loan Scheme (CBILS), enabling the development of 54 new holiday units.
In 2022, Mr Pendleton received an industry award for his outstanding contribution to UK tourism, and the company has previously been recognised as Pembrokeshire’s best caravan and camping park.

Buyer invited
The Herald understands the administrators are currently in talks with interested parties and invites serious enquiries from potential buyers.
Anyone wishing to express an interest in purchasing the business or its assets is advised to contact the joint administrators without delay.
PHOTO CAPTION:
Photos: Luxury lodges and views from Meadow House (Images: Celtic Holiday Parks)
Business
Pembrokeshire businesses recognised at national rural awards

Velfrey Vineyard and Coterie Leather celebrated at Westminster reception
PEMBROKESHIRE MP Henry Tufnell has praised two local businesses for their contribution to the county’s rural economy, following their recognition at the Countryside Alliance Champions Reception held at Westminster.
Velfrey Vineyard, based near Narberth, and Coterie Leather, which produces hand-crafted leather goods in Pembrokeshire, were both honoured at the annual event, which celebrates outstanding rural businesses from across the UK.
Mr Tufnell said it was “a real privilege” to meet Andy and Fiona from Velfrey Vineyard, along with Tracey from Coterie Leather, and to see their hard work acknowledged on a national platform.
“These are two incredible local businesses – putting Pembrokeshire on the map, and contributing so much to our local economy,” Mr Tufnell said.
Velfrey Vineyard is known for its crisp Welsh sparkling wines, produced from grapes grown on the south-facing slopes of the Lampeter Vale. The vineyard has been steadily gaining national recognition for both the quality of its wines and its commitment to sustainable viticulture.
Coterie Leather, meanwhile, specialises in high-quality leather bags and accessories, all produced locally using traditional methods and ethically sourced materials. The business has built a loyal following for its craftsmanship and sustainable values.
Speaking after the event, Mr Tufnell encouraged residents and visitors alike to support local producers. “If you’re looking for a crisp Welsh wine to enjoy in this sunshine, or a sustainably produced leather bag to pack your summer essentials – you know where to go.”
The Countryside Alliance Awards, often referred to as the “Rural Oscars”, are held annually to celebrate businesses that go the extra mile to support their communities and promote the rural way of life.
Photo caption: Proud moment: Andy and Fiona from Velfrey Vineyard, and Tracey from Coterie Leather, meet Henry Tufnell MP at the Countryside Alliance Champions Reception (Pic: supplied).
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