Recent discussions in Parliament have underscored growing cross-party concern about the link between new housing developments, outdated infrastructure, and increased flooding risk. A Westminster Hall debate on “Flooding: Planning and Developer Responsibilities” (13 May 2025) laid bare the scale of political and community concern – and the increasing attention being paid to the implications for insurance, drainage responsibilities, and planning reform. These discussions are highly relevant to insurers and property stakeholders in the context of the Government’s ambition to build 1.5 million new homes this Parliament.
MPs from across the political spectrum highlighted the systemic strain new developments are placing on already inadequate drainage systems. George Freeman MP (Conservative, Mid Norfolk), who led the debate, described how the addition of 10,000 new homes in his constituency has overwhelmed village drainage systems and led to repeated internal and external flooding. Other MPs pointed to illegal drainage practices, unmaintained infrastructure, and the failure to align development with drainage capacity.
Concerns were raised about current planning rules, which often permit developers to bypass local plans and proceed despite infrastructure shortfalls. Several MPs advocated for planning reform to require infrastructure upgrades before development approval, including mandating drainage performance reviews post-construction; a proposal set to be debated as part of New Clause 7 to the Planning and Infrastructure Bill.
Sustainable Drainage Systems (SuDS) were a central theme, with repeated calls for Schedule 3 of the Flood and Water Management Act 2010 to be enacted. MPs highlighted the urgent need for SuDS to be designed, adopted and maintained in a standardised, enforceable way.
In response, Environment Minister, Emma Hardy MP, confirmed that the Government is “strongly committed to requiring standardised SuDS in new developments”, noting their benefits for managing run-off, improving water quality, and delivering climate-resilient infrastructure. While the Minister stopped short of immediately committing to Schedule 3, she confirmed that a final decision will be made “in the coming months”. This is the strongest signal yet that the Government may be preparing to act on a longstanding demand of the insurance industry and environmental experts.
The Minister also referenced revisions to the National Planning Policy Framework (NPPF), now requiring all developments that may have a drainage impact to incorporate SuDS “appropriate to the nature and scale” of the development.
MPs highlighted the rising cost of insurance in flood-prone areas, even for homes where the flooding is caused by planning or infrastructure failings outside the resident’s control. There was support for extending the scope of Flood Re and reforming the “frequently flooded” allowance. Calls were also made to ensure Flood Re’s future beyond 2030 is clearly mapped out, particularly in light of the growing frequency of inland and surface water flooding events.
George Freeman MP revealed that approved insurance claims in Q1 2025 for flood-related damage in Norfolk alone had reached £200 million – a 50% rise on the previous quarter – illustrating the growing exposure insurers are facing.
This debate reinforces the growing pressure on the Government to address flood resilience at a systemic level – particularly through planning reform and enforceable SuDS obligations. With the Planning and Infrastructure Bill progressing through Parliament and a Government decision on Schedule 3 imminent, insurers should be aware of the direction of travel:
We will continue to monitor the progress of the Planning and Infrastructure Bill and Government decisions on SuDS and provide further updates as these issues evolve.
If you would like to discuss the implications of these developments or how they may affect your risk exposure, please contact us.
Natalie Larnder, Head of Market Affairs
Matthew Rogers, Head of Property Risks & Coverage and Climate & Emerging Risks SIG Lead
Matthew Kirk, Associate and Vegetation & Subsidence SIG Lead
Heather Ford, Partner
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