Flood insurance at risk if Environment Agency concerns are ignored, says ABI

Local planning authorities in England granted planning permission for 16 major developments despite Environment Agency objections on the grounds of flood risk during 2007/08, according to its annual ‘Development and Flood Risk’ report.

The 16 developments included 240 homes, a primary school, offices, apartments, a business park and a ferry terminal. This was up from 13 major developments in 2006/07.

New property developments that go ahead despite Environment Agency concerns about flood risk will be harder and more expensive to insure against flooding, warned the ABI (Association of British Insurers). 

Nick Starling, the ABI’s director of general insurance and health, said: “Despite tougher planning controls, it is worrying that during 2007 and 2008, 16 developments – which included 240 homes – were given planning permission despite the Environment Agency advising against them because of the flood risk.

“This highlights the importance of developers and planners following the ABI’s recently published guidance on insurance for new developments [Climate Adaptation: Guidance on Insurance Issues for New Developments]. Building on floodplains should be avoided, but if it has to take place then developers must ensure that properties incorporate measures to reduce and manage the flood risk. Without proper measures to reduce flood risk, these properties will be uninsurable, unsellable and uninhabitable.”

Paul Leinster, chief executive of the Environment Agency, said: "There are already millions of people at risk from flooding and this number is set to rise in future due to the impacts of climate change. We helped reduce the risk of flooding to some 7,000 extra properties in England in the six months to September 2007. We're playing our part in managing the risk to properties and people, and local authorities have a crucial part to play by restricting development in flood plains.

"By working closely with planning authorities, we have continued to influence decisions and prevented developments which would have placed the occupants at a high risk of flooding. We're pleased that most councils take our flood risk advice in relation to planning decisions, but are concerned that a minority of decisions go against our advice."

Virtually all (96 per cent) of the planning decisions where the Environment Agency objected were in line with its advice - the highest ever level of compliance.

The Environment Agency lodged objections to 6,232 planning applications on the grounds of flood risk in 2007/2008 up from 4,750 in 2006/2007. A high proportion of these objections were removed after negotiation with developers and local authorities resulted in modified plans.

The Environment Agency also said £700m of funding will be allocated to help reduce flood risk across England, up from £650m last year.