Amanda Blanc, chief executive of insurance giant Aviva, has issued a stark warning that homes are currently being constructed in areas with escalating flood risks, potentially rendering them uninsurable in the future. Speaking to the BBC, Blanc stated that approximately 115,000 new residences are projected to be built in flood zones over the next decade, a trend she described as illogical given the intensifying dangers.
Data from the Environment Agency indicates that roughly 6.3 million homes and businesses across England are exposed to flooding. Furthermore, research conducted by Aviva reveals that one in nine properties completed between 2022 and 2024 face medium to high flood risk. Blanc emphasized that the location of these developments is well known, arguing that greater caution is required regarding where new housing is erected.
The severity of the issue is underscored by projections suggesting that nearly a third of homes built in 2024 could face some level of flooding by 2050. With extreme weather patterns becoming more acute, one in seven of these newer properties is expected to be at medium to high risk. The Met Office has corroborated the increasing danger, noting that record-breaking wet winters, such as the one experienced in the UK during the 2023-24 period, have shifted from occurring once every 80 years to once every 20 years due to current warming levels.
In response to the concerns, a spokesperson for the Department for Environment, Food and Rural Affairs highlighted a record investment aimed at protecting nearly 900,000 properties from billions of pounds worth of potential flood damage. The spokesperson added that proposed planning reforms are designed to prevent housebuilding in high-risk areas, supporting a target of 1.5 million new homes while maintaining safety standards.
Blanc also addressed broader economic policy ahead of Chancellor John Healey’s first Budget on 28 October, cautioning against premature speculation on tax changes. She noted that rumors regarding pension reforms in recent years triggered a surge in withdrawals, with Aviva observing withdrawal rates 30 times higher than normal. Blanc advised policymakers to be prudent, reminding the public that tax-free lump sums cannot be redeposited into pension schemes.
Regarding infrastructure, Blanc confirmed that Aviva is prepared to deploy capital, citing over £100 billion in UK investments, including £35 billion directed toward infrastructure projects such as hospitals, schools, and wind farms. She also touched upon the debate surrounding the pension triple lock, noting that any reduction in state pension increases would likely necessitate higher private pension contributions to maintain financial security for retirees.
So the environment department claims planning reforms will stop this, yet 115,000 homes are still going into flood zones?
I didn’t realize one in nine new properties now have medium to high flood risk. That number is shocking and needs urgent attention.
Interesting that she warns against tax speculations. People learned their lesson after the pension panic last year.
Uninsurable homes? That sounds like a financial time bomb for homeowners. The government needs to act before it’s too late.
Building homes where they flood every two decades is madness. Why are we still permitting this in high-risk zones?