A new Flood Performance Certificate (FPC) scheme has been announced in England by the Government and Flood Re in a bid to reduce the risk of flooding to homeowners and insurers.
Similar to the Energy Performance Certificates (EPC) required when selling a home, an FPC will provide standardised information on flood risk and resilience measures in place on a property.
Initially piloted in England, it is hoped the scheme will help homeowners to protect themselves against the devastating effects of flood damage, help to reduce insurance premiums for those whose homes are in in high risk areas and also make homes easier to sell and buy.
What will an FPC contain?
In a bid to make the risks clearer to those who either own a property, or are thinking of buying in a flood risk area, an FPC will contain standardised information on risk, resilience and details of any steps that have been taken to protect the home.
According to the Government website: "They will pilot approaches such as a ‘Flood Performance Rating’, which breaks a property’s flood risk down to categories such as exposure, characteristics and resistance. This will draw on flood risk information already available through the ‘Check Your Flood Risk’ service, covering risks such as rivers and surface water."
And, in a similar way to EPCs, which include recommendations on how to improve your home's energy performance, FPCs will also offer advice on reducing risk at your property by implementing features such as flood barriers, self-closing air bricks (a type of natural ventilation) and even flood-resilient kitchens.
Flood Re will roll out the pilot in vulnerable areas first
Pilot schemes to test the certificates will be led by Flood Re, a joint initiative set-up by the Government and the insurance industry designed to make homes and contents insurance more affordable.
Insurance companies can pass the flood risk part of your policy to Flood Re who then pay back any claims made on an insurance policy from a central fund. Covering properties built before 2009, it also means homeowners who include flood-resilient measures in any repair work made as a result of a flood will be able to access more money to do so.
"We’ll begin piloting FPCs in 2026, with a focus on what helps householders to understand their risk and take action," said Perry Thomas, CEO of Flood Re. "Over time, we want resilience improvements to be recognised and rewarded, helping create a future where access to affordable insurance increasingly reflects the actions people take to protect their homes."
The scheme will start in areas already identified as at risk, and more pilots will be added in 2027 and beyond, with Flood Re's ultimate aim for app-based flood self-assessments to become routine.
Industry experts react to the scheme
Experts in the home insurance industry have welcomed the news, noting how it's needed with climate change impacting weather.
Nathan Blackler, home insurance expert at Go.Compare told Homebuilding & Renovating: “Flood Performance Certificates could prove to be exceptionally useful for homeowners and house hunters if fully implemented. Flood risk is likely to become an increasingly important consideration for homeowners over the coming years as climate change continues to affect weather, so having a better way to assess a property’s risk and resistance to these issues will be very valuable. They could help Brits make better decisions about their homes, in terms of where they buy or rent, as well as whether they’ll need to take further steps to protect their home and make them flood-proof."
Estate agents see the scheme as a step forward, but some have concerns as to the impact it could have on house sales. Verona Frankish, CEO of Yopa said: “Greater transparency around flood risk is a welcome step and one that could actually help speed up property transactions by ensuring buyers have the information they need from the outset.
"Far too often, important details only come to light once a sale is already progressing, leading to delays, renegotiations or even a complete collapse of the transaction. Making flood risk clear from day one should help buyers make more informed decisions and reduce the likelihood of sales falling through further down the line."
“On the face of it, greater transparency around flood risk is undoubtedly a positive," said Marc von Grundherr, Director of Benham and Reeves, "but there could be unintended consequences for homeowners who weren't afforded the same information when they originally purchased," he warned.
"A poor flood rating could deter prospective buyers, weaken a seller's negotiating position and potentially impact property values. The danger is that some homeowners could find themselves effectively trapped in properties that become significantly harder to sell, through no fault of their own.”
Additional measures also announced in Flood Action Week
Along with the launch of FPCs, this year's Flood Action Week has seen the unveiling of Flood Action Online – a one stop shop for homeowners to seek practical flood advice, and the launch of a new Flood and Drought Resilience Taskforce that will meet for the first time this week.
Floods and Drought Minister Emma Hardy said: "We’re facing extreme weather, with flood and drought intertwined, but the government is taking decisive action. We’re taking a smarter, more joined-up approach to manage the nation’s water and set up our new Flood and Drought Resilience Taskforce. This will put communities and businesses at the heart of our work and will make sure the UK is ready for whatever the weather brings next.
"Flooding is devastating for families and communities, and we need all households to know about their own flood risk and what can be done to reduce it," she continued. "This Flood Action Week, the government is going further to protect communities and business while also providing the public with the tools to check their flood risk, prepare a flood plan, and sign up for flood warnings to protect their home and family."
