Thousands of newly built homes in England could become increasingly difficult or prohibitively expensive to insure as flood risks intensify, according to Amanda Blanc, chief executive of Aviva, who has urged planners and housebuilders to reconsider development in vulnerable areas.
Blanc, who leads Britain’s biggest insurer, said the threat from flooding was “absolutely increasing” and warned that continuing to construct properties in areas known to be at risk could create serious problems for homeowners, mortgage lenders and insurers.
Aviva Chief Raises Concerns Over Building in Flood-Risk Areas
Speaking to the BBC, Blanc highlighted the potential impact of extreme weather following periods of prolonged dry conditions.
“You’ve seen a very dry summer, and what happens if you then get heavy rain on very dry surfaces is you get more surface water flooding.”
She said 110,000 homes had been built in flood areas during the past decade and warned that, if the current trend continued, another 115,000 properties could be constructed in such locations over the next 10 years.
“That doesn’t seem to me to make sense. We need to think about where those homes are being built,” she said.
During the BBC’s Big Boss Interview podcast, Blanc said England was “for sure” constructing properties that could eventually become uninsurable.
“If you think that there’s an inevitability of something happening, that’s not what insurance is, right? Insurance is a pool where you know there’s a risk that something happens for some people and not for others. When there is an inevitability, it makes it very difficult for it to be insured.”
Millions of Properties Already Face Flood Risk
Blanc urged planners and developers to take greater account of established flood-risk information when considering new housing.
“It’s very well known where these flooding areas are. Let’s think very carefully about homes that are being built,” she said. “It’s dangerous.”
According to the Environment Agency, about 6.3 million homes and businesses in England are currently at risk of flooding. That figure could rise to approximately 8 million properties — equivalent to around one in four — by the middle of the century as climate change increases the threat.
The insurance implications can extend beyond the cost of repairing flood damage. Properties that cannot obtain affordable cover may become more difficult to mortgage or sell, potentially leaving homeowners exposed to substantial financial losses.
Flood-Resilient Homes Could Reduce Damage
Blanc said measures could be introduced to make properties more resilient to flooding. These include bricks fitted with self-closing air vents, stainless steel kitchens instead of wooden fittings and electrical sockets positioned higher up walls rather than close to floor level.
“You can do all sorts of different things to your property to make it more or less vulnerable to flood.”
Aviva research has found that more than a quarter — 26%, or 101,657 — of new homes have some level of flood risk today. The insurer estimates that one in seven new homes could face a medium-to-high flooding risk by 2050.
The changing climate is already affecting the frequency of extreme weather. Following the particularly wet and stormy UK winter of 2023-24, the Met Office estimated that winters of comparable severity had shifted from roughly once-in-80-year events to around once every 20 years.
Blanc Warns Government Against Pre-Budget ‘Kite Flying’
Blanc also called on ministers to avoid policy “kite flying” ahead of Chancellor John Healey’s first Budget on 28 October, particularly over possible changes affecting pensions.
Aviva is one of the UK’s major private pension providers. Speculation over pension policy ahead of previous Budgets has prompted some savers to withdraw tax-free cash earlier than they otherwise might have done.
“Effectively we saw in the last year 30 times the normal withdrawal from pensions that we would normally see, which is clearly something which customers may regret afterwards because once you take your tax-free lump sum out, you can’t put it back in,” Blanc said.
Aviva Boss Preparing to Leave BP Board
Blanc also addressed her role as BP’s senior independent director, where she has been involved in leadership changes at the energy company. She is due to leave the BP board next year after five years.
“It’s been a tough gig, right? There’s no doubt about that, and there’s been a lot thrown at BP. But if I look at it today and the combination of a new chair, new CEO, I think that’s a good combination to take BP forward … it’s time for me to move away.”
Blanc’s warnings underline the growing financial implications of flood risk for England’s housing market. With millions of existing properties already exposed and further development planned, decisions over where and how new homes are built could increasingly determine whether affordable insurance remains available in the decades ahead.
Thomas Hawthorne is a contributor to Nintendo-power.com, covering a broad range of topics including news, business, technology, entertainment, lifestyle, and current affairs. He focuses on delivering clear, accurate, and accessible reporting that helps readers stay informed about important developments and emerging trends. With a reader-first approach, Thomas aims to provide useful context, balanced insights, and engaging stories that reflect the issues, events, and interests shaping everyday life.