Aviva chief warns England’s new homes could become uninsurable as flood risk rises

Aviva chief executive Amanda Blanc warned that England is "for sure" building homes that may become uninsurable in the future as flood risk intensifies.

The comment comes amid growing evidence that climate‑related flooding is becoming more frequent and severe across the country, with river over‑flows, coastal erosion and intense rainfall events increasingly threatening low‑lying developments.

Insurance providers have responded by tightening underwriting criteria and, in some cases, withdrawing coverage for properties deemed high‑risk. Aviva, one of the nation’s largest insurers, has highlighted the challenge of balancing long‑term liability with the need to support new construction.

Housing policy makers face a dilemma. The government’s ambition to deliver tens of thousands of new homes each year clashes with the imperative to ensure those dwellings are resilient to water‑related hazards. Planning authorities are under pressure to incorporate flood‑risk assessments earlier in the development process.

Potential buyers and mortgage lenders are likely to feel the impact. Without viable insurance, lenders may hesitate to finance properties, and property values in vulnerable areas could stagnate or decline.

Industry experts suggest a range of mitigations, including stricter building codes that require elevated foundations, improved drainage, and the integration of natural flood‑management solutions such as wetlands. Public‑private partnerships to fund larger flood‑defence schemes are also being explored.

Blanc indicated that the sector expects regulatory adjustments to address the looming coverage gap, and that insurers will continue to refine risk models. She urged coordinated action among government, developers and insurers to protect both homeowners and the broader housing market.