The importance of protecting new homes from climate risks

Many communities experienced prolonged rainfall earlier this year. For millions of households, wet weather now poses a significant and immediate threat. Flooding has become an increasingly common reality, creating uncertainty and anxiety whenever heavy rain occurs.

The Environment Agency projects that by mid-century, the number of homes in England at risk from flooding is set to rise by 27%, from 6.3 million to 8 million.

While river and coastal flooding remain key concerns, surface water flooding is a rapidly growing risk. Between 2040 and 2060, the number of properties exposed to surface water flooding is expected to increase substantially, including a 66% rise in homes categorised as high-risk. 

Recent analysis from Aviva revealed that one in nine new homes built between 2022 and 2024 are located in medium or high-risk flood areas. By 2050, that figure is expected to rise to one in seven.

Jason Storah, Aviva

Aviva’s Building Future Communities report, published last year, also found that every constituency in Great Britain is expected to face increased flood risk with urban and densely populated areas particularly affected. 

Almost 70% of English constituencies (69%) will see an increase of more than 25% in the number of homes at risk. These concerns are even more pronounced for owners of new homes. 

Recent analysis from Aviva revealed that one in nine new homes built between 2022 and 2024 are located in medium or high-risk flood areas. By 2050, that figure is expected to rise to one in seven. 

Worryingly, the study also suggests that new homes could face a higher relative risk than existing housing stock. This surely cannot be an outcome that 
anyone wants.

This is despite the industry’s agreement with Government at the introduction of Flood Re – which excludes homes built after 2009 – specifically to discourage the development of homes in high-risk areas. 

The insurance sector supports the Government’s ambition to increase housing supply to support economic growth. That is not in dispute. However, growth must be sensible, sustainable and must not come at the expense of building homes in inappropriate or high-risk locations. Flooding already costs the UK economy £6bn annually. 

Further development in unsuitable areas will add additional pressure to infrastructure and could limit access to mortgages and insurance for future and existing homeowners. 

The recent National Planning Policy Framework consultation proposed allowing developers to bypass the sequential test, which is designed to direct developments towards areas of lower risk. The test plays a critical role. 

The proposed alternative to use developer-proposed site-specific flood risk assessments is flawed, because Local Authorities do not have the resources to scrutinise proposals rigorously or capacity to check compliance. They also risk reduced accountability should mitigation measures prove ineffective.

As an industry, we believe a clear presumption against development in high-risk flood areas would benefit both local authorities and developers. 

The Government is at a pivotal point in shaping the future of UK homebuilding, and decisions taken now will determine whether homeowners face unnecessary financial and emotional strain in the years ahead.

Ensuring that new homes are built in the right places is a vital part of helping homeowners to get ready for the future, but resilience must also be central to future planning. As extreme weather events become more frequent, greater emphasis and investment in property-led resilience will also be required. 

The Flood Re Build Back Better scheme is already helping households install resilience measures that can provide peace of mind and greater protection should flooding occur again. 

Many insurers, including Aviva, participate in the scheme, but take-up must increase. More insurers need to be involved and discuss resilience options with their customers following flood events. 

While support for existing homes is expanding, it is imperative that new properties are afforded the same protection. A package of effective, low-cost resilience measures can be installed for as little as £1,000 yet many new homes currently lack these safeguards. 

Government must make property flood resilience mandatory for homes constructed in at risk areas – particularly those vulnerable to surface water flooding, which often do not benefit from traditional flood defence schemes.

Permitting development in high-risk areas without mandating resilience measures jeopardises sustainable growth. We must act now. Living with water is a reality and the UK must plan accordingly or face costs and consequences that will be far harder to address in future.