Ministers to throw more money at flood defences

Are you an estate agent in an area affected by last month’s floods?

If so, then the good news is that the Government is to invest a further £120m in flood defences, as it was revealed that the likely cost of flood claims so far this year is likely to be around £1bn.

However, there is still stalemate on the vital question as to whether around 200,000 homes in flood-risk areas will be blighted if insurers refuse to insure them in future – and that could be as early as next year.

‘Blighted’ means not just uninsurable, but unmortgageable and unsaleable, which can’t possibly be good news for estate agents.

The Government has so far declined to step in and help with a temporary float (sorry) of taxpayers’ money that would pay out while a fund proposed by the insurance industry builds up reserves.

The AA is also warning that many areas not regarded as flood-prone are at risk both now and in the future, with floods affecting places with no history of the problem.

Simon Douglas, director of AA Insurance, warned: “It’s vital that the insurance industry is able to continue protecting such homes and not pushed to the bottom of the in-tray as soon as the next dry spell comes along.”
 
Clearly, the additional £120m to be invested in flood defences, which comes on top of the £2bn already committed over the next four years, is good news. However, spending on flood defences is still 6% less than over the previous four years.