The Government must not build housing developments on flood-prone areas, says the Association of British Insurers (ABI).
The regulator says halting plans to build on floodplains would ensure flood insurance remains “widely available and competitively priced”.
The comments come as the Government releases a draft of its Housing Green Paper, which outlines plans to build 3m houses by 2020.
Nick Starling, the ABI’s director of general insurance and health, says: “We need new homes. But they must be built in the right place and to the right design. The devastation caused by the recent floods shows the importance of planning for the future.
“We need a fresh approach to house building to take account of the increasing risk of flooding and to ensure sustainable communities. New homes should not be built in high-risk areas of the floodplain. They must be planned and designed with flooding in mind, with greater use of flood-resilient building materials.”
Yesterday housing minister Yvette Cooper told the BBC it is “not realistic” to scrap development plans in flood-risk areas and the Government will put “proper defences” in place.
The ABI said yesterday the bill for June and July’s floods would reach £2bn, an increase on the £1.5bn estimated earlier this month.
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