Private sector tenants could be left homeless as a result of a decision by the Government not to include rented properties in its flood insurance cap scheme.
The Flood Re Scheme will come into force next year and will cap the insurance of home owners in flood-prone areas at up to £540 a year, varying by council tax band. This will be paid for through a levy of around £10.50 on all household premiums across the country.
A Government response to a consultation on the regulations to implement the scheme has however ruled out homes in the private rented sector from being included.
This policy will, the RLA argues, lead to tenants affected by flooding becoming homeless as landlords will struggle to afford the insurance needed to provide for alternative accommodation.
It comes despite the Government’s response making clear that the most expensive properties in the country in Council Tax Band H will be covered by the scheme.
Commenting on the developments, RLA Chairman, Alan Ward said:
“Ministers are leaving tenants and landlords in a difficult position. The dangers of tenants having to leave their homes because of flooding with nowhere else to stay are very real.
“It simply cannot be fair that at the same time, those able to afford large houses are being subsidised by the taxpayer for their flood insurance.
“We are calling on the Government to think again. A home is a home whatever its tenure.”
- On the 18 th December the Department for Environment, Food and Rural Affairs published its response to the consultation on the Flood RE scheme regulations. This can be found at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/388915/flood-re-gov-response-201412.pdf . This confirmed that private rented housing will be excluded from the scheme but that Band H properties will be included.