Cyclone-affected homes may need to be rebuilt off the ground

Insurance premiums will not be the only thing going sky-high after recent flooding - those wanting to rebuild homes may face their ground floor being up a staircase.

Councils in cyclone-hit areas say it is too early to know exactly how high people will need to rebuild, if they can, but they are providing the government with updated flood risk areas.

Those in Westport have been through it, where the locals joke it is the place to get on the property ladder.

After his house flooded, Westport resident Shannon Carlson was told to rebuild 2.5 metres off the ground.

He and his wife had plans drawn up for 2.7m, giving some wiggle room underneath.

"From ground I would need to be building at 2.7m... 2.7m makes sense because then you can utilise the land underneath it for the likes of a car port al fresco," Carlson said.

"It does have a cost but also the cost of getting a good night's sleep comes into it as well."

But when it came to pushing go, their bank would not advance a loan on the property, deeming it risky business.

"The bank, of course, they changed their mind about Westport quite closely afterwards. We were going to move the old house off and build high and that just didn't happen."

Instead they bought a section just out of Westport and built on higher ground, at ground level.

The original house on the section by Buller River has since been removed and Carlson has put the section on the market, but reckons anyone buying it will need to self finance building a home.

"Why would they give you a mortgage when next minute you're going to have 900 millimetres of water flowing through your house and you have to restart," he said.

"Is it actually going to be worth anything in the long run, don't know."

Westport realtor Charlie Elley manages Property Brokers and has come across homeowners struggling to get mortgages.

"The latest thing we've struck is that people looking to extend their existing loans have gone to banks and been advised it's more difficult for the bank to gain insurance on their lending, it's now been identified as a potential hazard zone."

Elley said he was also hearing new homeowners in Westport have to shop around for an insurer willing to take on the flood risk.

After the floods, councils updated their modelling because the Building Act requires homes to be built above 100-year flood levels.

Elley said in Westport, many houses were raised and new builds in flood plains can be metres off the ground.

"There's a number of jokes about, invest in Westport and climb up the property ladder because there's no other way you'll get in the house."

He said the humour tempers the frustration, at what some residents feel is a lack of progress developing flood protection infrastructure for the town.

Relevance for those affected by cyclone

Westport's situation is relevant for owners of homes flooded during Cyclone Gabrielle, who are waiting to learn what they can and cannot rebuild.

Four councils in Hawke's Bay and Gisborne said it was too early to determine what will happen with regards to rebuilding, including the question of how high houses may need to be raised.

Gisborne resident Paul Mullooly's riverside house completely flooded during the cyclone, and his backyard was buried in silt.

He has had a cost estimate from an insurer for rebuilding but is getting a second opinion before progressing too far.

"Our place, whilst it looks absolutely shocking, it's repairable so we're just getting on with it."

Raising the house above the flood level was not on the plans at this stage, but if he had to pop the house on poles so to speak, he was concerned the cost would soar.

"You look at a whole other level of time and cost because if you're going to go higher you start looking at geotech, consents. That could put another six to eight months onto the repair of the house."

Mullooly said if he needed to rebuild off the ground, the sooner he knew, the better.