Flood costs 'to hit 3.5bn in 2020'

26/01/12

By Emma McFarnon

Flood defences must be bolstered as flooding could cost the UK £3.5 billion by the 2020s, experts have warned.

In the first national assessment of the risk of climate change, conducted for the Government, experts predict the cost of floods could spiral over the coming decades.

Looking towards the future, experts say floods will increase in frequency, causing significant damage to homes and people's mental health. This would impact heavily upon insurance companies and mortgage providers.

As it stands, floods cost the UK £1.2 billion a year. The assessment claims this figure could rise to between £1.5 billion and £3.5 billion by the 2020s, and a staggering £2.1 billion to £12 billion by the 2080s for England and Wales.

The UK is also expected to face water shortages, more droughts and diseases.

The assessment did acknowledge however that the changing climate could allow the UK to grow new crops and attract more tourism as temperatures grow milder.