New report finds flood defences save UK households £1.15 billion in damages each year.
- Residential properties across the UK avoid £1.15 billion in annual damages from river flooding every year due to flood defences. See here
- Annual flood losses to households would be 2.8x higher without current levels of flood protection.
- Flooding is the UK’s most significant natural disaster risk, with one in four properties at risk[1].
- Flood defences are essential to prevent the trauma and devastation of flooding.
- The UK urgently needs a long-term flood defence investment of more than £1 billion a year to ensure that we keep pace with adapting to climate risk.
As the Government is considering it long term spending plans, new research shows that flood defences prevent £1.15 billion in flood-related damage to UK homes each year. The analysis from Fathom, a leading flood risk modelling company, was commissioned by Flood Re, a joint initiative between the UK Government and insurance industry.
The research commissioned is for households alone. The total figure would exceed £2 billion if all types of damage were included (business, industrial and agricultural) and costs (such as alternative accommodation). With one in four UK properties at risk of flooding, further defences are critical. Six of the wettest years on record in the UK have occurred since 1998, and recent storms – including Babet, Ciaran and Debi – have led to £570 million in insurance payouts. According to the new research, annual losses to households would be 2.8 times higher if not for existing levels of flood protection.
Climate change is expected to increase flood risk further, with the number of properties vulnerable to river and coastal flooding rising 27% by 2069 – from 2.4 million to 3.1 million.[2]
Dermot Kehoe, Director of Communications and Transition, Flood Re, said: “The UK needs long-term flood defence investment of at least £1 billion a year to ensure we protect our homes and businesses from the devastation flooding brings. We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk.
“Flood Re remains committed to working with Government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”
Hannah Gurga, Director General, Association of British Insurers, said: “Insurers continue to be at the forefront of climate change, paying out a record £585 million in claims last year to help households recover from extreme weather events. If we’re going to protect communities across the country with climate-resilient properties, we must shift from reactive and remedial action to a greater focus on prevention. Adequate and long-term Government investment in maintaining and strengthening our flood defences is essential and we hope to see the Government commit to this within its Spending Review.”
Dr Oliver Wing, Chief Scientific Officer, Fathom, said: “The value of flood defences to UK households is unequivocal, saving them more than £1bn combined each year on average and up to £13bn during very severe floods. As our nation’s infrastructure ages, rebuild costs balloon, and climate change fuels ever more intense flood events, funding the maintenance and expansion of the UK’s flood protection systems has never been more critical.”
[1] New JBA model reveals 1 in 4 UK properties at risk to flood | JBA Risk Management
[2] National assessment of flood and coastal erosion risk in England 2024, January 2025 (link)