Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Flood Performance Certificates to be Piloted in England from Late 2026
Flood Re is developing Flood Performance Certificates (FPCs) with government support to provide a standardised assessment of a property's flood risk and resilience. Testing will begin in England later this year, with further trials planned throughout 2027 and beyond.
Similar in concept to Energy Performance Certificates (EPCs), the certificates would give homeowners, buyers, insurers and mortgage lenders clearer information about flood exposure. The move could affect property transactions, particularly in areas where flood risk influences buyer confidence, mortgage lending or insurance availability.
The proposed system will assess factors including a property's location, physical characteristics and resistance to flooding. It will also identify improvements that could reduce damage, such as flood barriers, self-closing air bricks and water-resistant flooring. Unlike existing flood risk searches, the new system would also recognise measures homeowners have already taken to protect their properties.
What could this mean for estate agents?
For agents marketing homes in flood-prone areas, the certificates could eventually provide a more consistent way to explain flood risk to prospective buyers. They could also help sellers demonstrate improvements they have made to protect their properties.
However, the proposals raise questions about how flood ratings might influence buyer demand, property values and mortgage decisions. A poor rating could become another consideration for buyers assessing a property's suitability. Conversely, evidence of effective flood protection could provide reassurance.
The government has not announced whether it intends to make FPCs mandatory during property sales or lettings. For now, the scheme remains at the pilot stage.
Insurers and lenders back proposals
The government hopes the certificates will encourage homeowners to invest in flood protection. It also wants insurers and lenders to recognise improvements when assessing property risk.
Perry Thomas, chief executive of Flood Re, said: "Flood Performance Certificates are about turning awareness into action. By helping people understand how resilient their home is, we can encourage greater investment in resilience and reduce the impact of flooding on homes across the UK."
He added: "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."
Aviva has also backed the proposals, warning that flood exposure could become a growing challenge for the property market. Jason Storah, chief executive of UK and Ireland General Insurance at Aviva, said: "By 2050 a quarter of homes are likely to be at risk from flooding. Improving flood resilience of homes is critical, not only for our customers, but also for insurers, developers and lenders alike."
He also highlighted the importance of maintaining affordable insurance, particularly for newer homes that fall outside the Flood Re scheme.
Robert Stevens, Nationwide's head of property risk, said a standardised approach could improve decision-making across the housing market. He commented: "Flood Performance Certificates have the potential to become a really valuable tool for homeowners, lenders and insurers by providing clear, consistent information about a property's expo
Source: Property Industry Eye