AXA UK has released a report identifying the regions in England most vulnerable to climate risks, including flooding and extreme heat, as part of a study examining the impact of climate change on homes and businesses.
The findings reveal that more than half of respondents feel ill-equipped to handle potential damage from these risks, posing challenges to the Labour Government’s target of building 1.5 million homes before the next Parliament.
The report was developed in collaboration with research consultancy Public First. Using publicly available data and AXA’s claims information, AXA said that the study creates a climate risk index that accounts for regional socioeconomic factors affecting preparedness, response, and recovery capabilities.
According to the report, London ranks highest for combined vulnerability to flooding and heat risks. Sheffield faces significant flooding risks but lower heat exposure, while Bristol and Birmingham show higher vulnerability to heat but not flooding.
Coastal areas in the East Midlands, Yorkshire and the Humber, the Southeast, and London are noted as particularly susceptible to flood risks.
Economic modelling within the report estimates that properties in England facing the greatest flood risks could incur £818 million in financial costs by 2055. A survey conducted alongside the study revealed that 55% of respondents view flooding as the greatest climate-related risk in the next decade, followed by severe storms (48%) and rising sea levels (47%).
Despite these concerns, 52% of respondents said they are unprepared for flooding or heat damage, and nearly half have not checked if their home insurance covers issues like subsidence caused by extreme heat.
Tara Foley, CEO of AXA UK & Ireland, underscored the importance of the findings, stating that the report aims to help policymakers allocate resources effectively and prioritise investment in resilience.
“We support the government’s ambitious housebuilding target but believe we must ensure existing homes are resilient and future-proofed, and new properties are not built in flood-prone areas. This is crucial to protect our future for generations to come,” Foley said.
The report also includes several recommendations for the UK Government. These include appointing a Minister for Resilience to focus on climate-related risks, avoiding housebuilding in flood-prone areas, and supporting property owners in mitigating flooding and heat damage risks.
AXA UK stressed the importance of aligning housebuilding initiatives with climate adaptation measures to safeguard properties for future generations.
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