Flood Re warns complex planning system threatens flood insurance for new builds

While progress has been made in adopting flood mitigation measures for new builds in the UK, Flood Re warns that a lack of transparency, consistency, and clarity is undermining the insurance sector’s confidence in the planning system and threatening its ability to insure new properties against flood risk.

Research by the Town and Country Planning Association (TCPA), commissioned by Flood Re, found that the evidence used to inform flood risk planning is often outdated and hard to access. Additionally, regulation is complicated by institutional issues and unclear roles and responsibilities.

The study also highlighted the complex postconsent planning process, noting that it lacks transparency, is minimally scrutinised for compliance, and is difficult for communities to engage with.

To improve consistency and effectiveness in flood resilience for new developments, the TCPA is calling for urgent action in three key areas: enhancing the quality of evidence and data used for planning decisions, reviewing the mechanisms for ensuring necessary flood safety measures, and strengthening the regulatory system to ensure these measures are effectively implemented.

For insurers to provide flood cover, they need confidence in the flood mitigation of new builds. Properties built after January 1, 2009, cannot be included in the Flood Re scheme for flood insurance, and the market will revert to risk-based pricing in 2039 when Flood Re exits the market.

Dermot Kehoe, Director of Communications and Transition, Flood Re, commented, “It is vital that new homes built in England are not at risk of flooding. Householders want to feel secure in their home and be confident that it will be insurable and mortgageable now and into the future. It is also important for wider insurance availability that we do not increase the total amount of flood risk the market is required to insure.

“This research shows that while there are areas of good practice, this is not consistent and the system lacks the transparency and clarity that could give home buyers, their insurers and lenders confidence that no new home is being built at flood risk.”

Celia Davis, Senior Projects and Policy Manager at the TCPA, stated, “The planning system should play a vital role in delivering flood resilient new development. However, our research reveals that it is failing to deliver safe developments due to procedural issues, which are borne out within a malfunctional system. Fundamental change is needed to secure a regulatory regime that keeps communities safe from the increasing risk of flooding for the long term.”

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