Lots of the villages on the outskirts are lovely - Great Orton, Wetheral, Cumwhinton, Great Corby, Warwick-on-Eden, Aglionby etc.
The Warwick Road/surrounding streets area was where most of the flooding occurred so I would suggest avoiding there, although a lot of the houses are beautiful.
The rougher bits are, I would personally say, Botcherby, Raffles, Longsowerby and Old Harraby (New Harraby is better than Old but still not amazing!)
If you want to be in the city rather than a village, Stanwix/Lowry Hill is considered the "nice" area.
The main village of Wetheral doesn't flood, there are a couple of houses that count as Wetheral that are right by the river that I assume did flood.
If you want opinions on specific areas once you've done more research into houses you like, let us know 