Published: Thursday, 26th February, 2009 12:00pm
AREAS of the Thames Valley including Reading could have property values sent crashing because worsening flood risks are not being addressed, according to an industry expert.
Gavin George, sales director for Berkshire-based flood defence supplier Floodguards, says the numerous areas under threat from the River Thames could find they can no longer get flooding included in their insurance policies as their risk increases.
Mr George’s warning follows the decision by insurance giant Lloyds of London to include a Thames Valley flood in its annual list of Realistic Disaster Scenarios (RDS), a document which highlights possible catastrophes around the world.
Lloyds believes climate change makes the possibility of a massive flood in Berkshire more realistic. It highlights an area of 194sq km covering Oxford, Reading, Slough and Henley and says damage could run to £6.2bn, mostly to residential property. But Mr George says the Government and local authorities must protect flood plains as natural flood defences.
A year ago the Association of British Insurers announced its members would not offer insurance for new homes built on flood plains and Lloyds believes inclusive flood cover could disappear in the next few years.
Mr George said: “Even if the excess increased to £2,500 then the values of those properties could drop by 40-50%. That would blight whole areas.” The floods of 2007 were, he said, the kind his firm had warned of and risks were increasing every year while the Government sat on its hands.
He said: “Bar a few very small pilot schemes and changes in policy, nothing has been done.”
l The Poachers pub near the River Loddon at Sindlesham, which was flooded earlier this month, has been shut for two weeks and it is likely to be another two until repairs are complete and it can re-open.
by Alan Bunce