We need to build homes in the right areas given climate change driven extreme weather - Tara Foley

Our recent report, Extreme Weather Risks: An Analysis of England’s Vulnerability to Flooding and Heat, reveals that homeowners could face a collective bill of £818bn over the next 30 years due to extreme weather. Our report found that three constituencies in Yorkshire and the Humber specifically were amongst the top five in England most vulnerable to flooding.

The estimated cost to residential properties with a high chance of flooding in Yorkshire and the Humber is £24m. For non-residential properties, it’s even higher, estimated at £56m. The cost to relationships and mental health is harder to quantify but no less real. At AXA, we witness this first hand when supporting affected customers.

It’s therefore unsurprising that 84 per cent of people we polled said they wouldn’t consider buying a property in a flood-risk area. The Government must confront this reality as it works toward its target of building 1.5 million new homes by the next Parliament. While new housing is urgently needed to address the UK’s housing crisis, it must be paired with mitigation of extreme weather risks - either by avoiding construction in high-risk areas or ensuring sufficient defences are in place.

Having the right tools to predict risks is crucial for making informed decisions. The Climate Risks Index created as part of our report is one such tool. It highlights the most vulnerable areas by combining data from our own insurance claims with information from organisations such as Defra and the Environment Agency.

To explore these issues, we hosted a positive roundtable in Parliament attended by MPs and led by the Minister for Water and Flooding, Emma Hardy, who is herself from a constituency which has felt the huge impact of flooding.

One of our key calls on the Government, which I highlighted at the roundtable, is for the closure of a loophole that permits development in flood-risk areas if space is left for future defences. The reality is that these defences often fail to materialise.

Although England’s 10 most vulnerable constituencies are in London according to our report, the city’s robust flood protection means flooding is not a daily concern for most Londoners. While risks remain, we know that effective solutions can make a significant difference.

To address these challenges, we need a clear, coordinated plan that involves both the public and private sectors. Ms Hardy highlighted Build Back Better, which AXA is proud to be a part of, as an example of how this partnership can deliver for customers. Only 66 per cent of insurers are currently members of the scheme and we agreed more needs to be done to support those impacted by flooding.

Adapting to and mitigating extreme weather risks is a shared responsibility between the Government and businesses such as AXA. The long-term success of housebuilding targets depends on our ability to protect new homes from flooding and heat damage - otherwise we risk burdening a new generation with unnecessarily high risks and homes which are potentially unfit to live in.

Tara Foley is the CEO of AXA UK and Ireland.