UK Finance took part in this work, contributing views and expertise from the perspective of the mortgage lending industry.  

Knowing and understanding the flood risk which a home faces, and how to mitigate it is vital now, more than ever, as climate change accelerates the frequency and severity of flooding across the country. 

We welcome this review, which is an important step towards building a system where property flood risk is better understood, managed, and mitigated. 

Surface water flooding is an increasing risk in urban areas, which are more densely developed and could have inadequate drainage. Large areas of paved surfaces in cities and towns can mean surface water has nowhere to drain easily and so inundates homes and businesses.  Even paved front gardens and driveways can make the problem worse.  

The FloodReady review highlights issues such as these and encourages homeowners to be flood aware, knowing the risk their property faces and being ready for flooding with property-level measures in place or to hand to address it. Simple inexpensive measures such as non-return valves, airbricks and vents as well as front door and garden gate barriers can be practical ways of reducing the risk of water getting into homes when floods happen.  

But making homes more resilient and flood recoverable is only part of the solution.  Action is needed on vital infrastructure such as larger scale engineering in the form of flood defences, which will require funding and investment. This, as well as tackling the availability and affordability of buildings insurance with flood cover, will ensure a more comprehensive whole-system approach for a sustainable future.  

That’s why we’re keen to work with the insurance industry and the Flood Re scheme (a joint initiative between the government and insurers) to ensure affordable cover is available for homes that need it. This is part of a wider move to insurance pricing that reflects risk - where flood defences and individual property measures are installed and maintained.  

To coincide with the launch of the FloodReady review, we’ve published a paper on the mortgage industry’s position on flood risk. 

It highlights a commitment by UK Finance to continue to work on these important issues. We also call for further collaborative action, including by government, to address flood risk and help ensure sustainable lending and insurance markets that meet the needs of people whose homes are at risk of flooding. 

Commenting on the launch of FloodReady, UK Finance Director of Mortgages Charles Roe said:  

" UK Finance welcomes the FloodReady Review and the recommendations it set out for tackling one of the most visible climate-related challenges facing households and communities. Flood risk is not just an environmental issue, it has direct implications for mortgage lending, insurance, and property valuation. The mortgage sector is committed to working with government, insurers, and homeowners to ensure investment in property flood resilience initiatives. This Review is an important step towards building a system where property flood risk is better understood, managed, and mitigated.” 

This is the start of a journey that will benefit people and businesses, improving resilience in the face of climate change and driving economic growth.  

To read our paper in full, click the below link: