Amanda Blanc, chief executive of insurance firm Aviva, has cautioned that residential properties currently under construction in flood zones may face insurability challenges in the future as flood risks escalate. She highlighted that despite well-documented flood vulnerability maps, approximately 115,000 new homes are projected to be built in flood-prone areas throughout the coming decade, raising questions about long-term viability of such developments.
Data from Aviva research indicates that nearly one in nine homes constructed between 2022 and 2024 face medium to high flooding risk. Projections suggest that by 2050, close to one-third of new homes built in 2024 will experience some flooding exposure, with one in seven at significant risk as severe weather patterns intensify. The Environment Agency estimates that approximately 6.3 million homes and businesses across England currently face flooding dangers. Recent meteorological analysis indicates that extreme wet winters, comparable to conditions experienced in 2023-24, have become significantly more frequent due to ongoing global warming trends.
Blanc advocated for more deliberate site selection in housing development and suggested that properties within or adjacent to flood zones require enhanced structural modifications to reduce vulnerability. She emphasized the importance of proactive planning rather than reactive measures after construction. The Department for Environment, Food and Rural Affairs countered that it has allocated record investment to protect approximately 900,000 properties and has introduced planning reforms intended to prevent housebuilding in high-risk flood areas while supporting construction of 1.5 million homes.
In broader remarks, Blanc urged government restraint regarding policy speculation ahead of the fiscal event on 28 October. She cited significant pension withdrawal surges linked to prior budget uncertainty, which resulted in withdrawal rates approximately 30 times higher than normal. Aviva indicated readiness to deploy capital for infrastructure investment, noting the company currently invests over £100 billion domestically, with £35 billion directed toward infrastructure projects including healthcare facilities, educational institutions, and renewable energy installations.
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