The UK needs annual flood defence spending of £1bn to protect homes and businesses, according to a new report commissioned by Flood Re.

The research – undertaken by flood risk modelling specialist Fathom – shows that flood defences prevent £1.15bn in flood-related damage to UK homes each year. The figures relate to households alone and would exceed £2bn if business, industrial and agricultural losses were included.

Flood Re says that with one in four UK properties at risk of flooding, further defences are critical. It adds that six of the wettest years on record in the UK have occurred since 1998, and recent storms – including Babet, Ciaran and Debi – have led to £570m in insurance payouts.

According to the new research, annual losses to households would be 2.8 times higher if not for existing levels of flood protection. Climate change is expected to increase flood risk further, with the number of properties vulnerable to river and coastal flooding rising 27% by 2069 – from 2.4m to 3.1m.

Dermot Kehoe, director of communications and transition, Flood Re, said: “The UK needs long-term flood defence investment of at least £1bn a year to ensure we protect our homes and businesses from the devastation flooding brings. We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk.

“Flood Re remains committed to working with government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”