Responsibility for flood management and drainage in England and Wales has a complex history. A Royal Commission on land drainage in 1927 reported that: ‘the administration of arterial drainage is conducted by a confused tangle of authorities, established by piecemeal legislation of five hundred years… Liability for works is regulated by no common uniform system, and is frequently obsolete and obscure’ The legacy of this complex history is still evident today, although legislative reforms over the last 25 years have helped to rationalise the landscape of flooding regulation. Historically, responsibility for flood management rested primarily with individual landowners and some duties remain relevant. For more information, see Practice Note: Flood management and drainage—landowner rights and responsibilities. Today, public authorities hold key roles in preventing and managing flooding on behalf of communities. Key legislation The key legislation governing the responsibilities of public bodies for flood management and drainage in England and Wales is summarised in separate Practice Notes: • Flooding—UK policy and legislative framework • Land Drainage

Background to the scheme The Association of British Insurers (ABI) and the government had an agreement, known as the Statement of Principles (SoP), in place since 2000. The SoP provided a commitment from the insurance industry to make flood insurance for domestic properties and small businesses available as part of standard household and small business policies if the flood risk is not significant (generally defined as no worse than a 1 in 75 year annual probability of flooding). The SoP also committed insurers to continue to offer flood cover to existing domestic and small business customers who were at significant risk (over 1 in 75 year annual probability of flooding). This continuation of cover was on the proviso that the Environment Agency had announced plans to reduce the risk of flooding in that area to below 1 in 75 annual probability within five years as part of their Medium Term Investment Plan. Insurers were further expected to maintain cover for new owners purchasing a property that had previously flooded or was at known

Planning analysis: The government has updated the Planning Practice Guidance (PPG) on flood risk and coastal change. The changes clarify how the Sequential Test should be applied, including a new definition of what counts as a 'reasonably available' site, guidance on scoping the 'area of search,' and confirmation that robust site-specific flood risk assessments can remove the need for the Sequential Test in surface water cases.

This Practice Note considers the law and policy surrounding flooding in Scotland: • providing an overview of legislation and policy and the Flood Risk Management (Scotland) Act 2009 (FRM(S)A 2009) • explaining flood risk management and the roles of different statutory bodies • highlighting guidance for developers on flooding where flood impacts need to be assessed as part of due diligence • covering potential mitigation strategies for flooding, and mitigation • discussing controlled activity licences Flooding can cause devastating impacts to individuals and businesses. The Scottish government has acknowledged the increasing risks and effects of flooding in Scotland as a result of climate change, and has developed national policy and devolved legislation to deal with the effects of increased flood risk in Scotland. The legislation and policy adopt catchment-scale and precautionary approaches to managing flood risk and recognise the importance for flood management to control new developments potentially at risk of flooding or which might otherwise increase flood risk. The Scottish government together with other public bodies have worked to provide legislative

The Law Society first issued its practice note on flood risk on 23 May 2013 due to the increasing risk to properties from flooding and the knock on effects this can have in obtaining a mortgage, insurance cover and in selling the property. The practice note was updated: • on 18 December 2014 to address changes proposed to the Flood Re insurance scheme, and refer to new flood maps published by the Environment Agency (EA), see News Analysis: Updated Law Society practice note on flood risk, and • on 10 February 2016 in preparation for the Flood Re insurance scheme commencing in April 2016, and to account for insurance changes to the CML handbook • on 31 January 2020 as a result of increasing concern about flood risk for property owners as a result of climate change As solicitors are not qualified to give advice on flood risk or interpret technical flood reports, the practice note aims to provide solicitors with information to help clients investigate these matters. Status of the practice note The

This Practice Note forms part of a suite of content on Flooding including the following Practice Notes: • Flooding—issues in property transactions • Flooding—flood risk assessment • Flooding—flood searches • Flooding—flood risk and development • Flood reinsurance—the Flood Re scheme • Flood management and drainage—lead local flood authority • Flooding—Law Society practice note on flood risk • Flood management and drainage—landowner rights and responsibilities • Flooding—issues in banking and finance • Flooding—issues in corporate (private M&A) transactions Flooding Policy Framework National Flood and Coastal Erosion Risk Management Strategy for England The original National Flood and Coastal Erosion Risk Management Strategy for England was published in 2011. Following consultation in England and in Wales the EA published the National Flood and Coastal Erosion Risk Management Strategy for England (FCERM) in 2020. Formal refreshment of the FCERM began in May 2026, as required under the FWMA 2010. Refreshment is based on new risk evidence, including coastal erosion mapping, experience from flood events and updated government priorities including climate, resilience,

Introduction to flood risk The UK has a legacy of development within areas at risk of flooding from river, surface and groundwater flooding. Continued development of rural and low lying areas has led to about six million properties at risk of flooding. This reflects exposure to river, coastal and surface-water sources and underpins the policy emphasis on risk-led spatial planning. Flood risk assessment is imperative in the context of property, legal and financial markets becoming increasingly sensitive to flood risk and the escalating cost of flood damage. Since flood risk management has become an important part of all new developments and property conveyancing, a range of products and assessments now exist in the market place providing varying scope and detail—see Practice Notes: Flood insurance and Flooding—flood searches. History of planning policy on flood risk Planning Policy Guidance 25: Development and Flood Risk (PPG 25) in 2001 (no longer in force) was the first notable planning policy guidance on development and flood risk. The guidance aimed to: • ensure flood risk is suitably taken into

Introduction to flood risk Flooding and coastal erosion can cause significant damage and disruption to infrastructure, properties, health, wellbeing, land and natural habitats. As climate change leads to sea level rise and more extreme rainfall, the number of people at risk from flooding and coastal erosion continues to grow. Flooding is affected by climate change and also by land use changes including development on flood plains, changes in agricultural land use, deforestation and drainage. For more information on climate change and its impact on flooding, see News Analysis: Government publishes long-term plan to tackle the risks of flooding and coastal erosion. In March 2020, the government committed in its policy paper: Planning for the Future to review policy for building in areas of flood risk to ensure the safety of future development from floods. The impact of flood water on residents/employees occupying a site can typically include: • water damage to ground floor properties • water damage to garages and sheds • inaccessible entry and exit points • relocation to temporary housing • business disruption • disruption

STOP PRESS: A revised version of the National Planning Policy Framework was published on 17 August 2026. This content is being reviewed in light of this revised edition. Introduction to flood searches Flooding has become a major environmental risk in the UK, with significant impacts for homeowners, lenders, surveyors, developers and other businesses. Flood risk has escalated due to climate change. For more information about climate change and its impact on flooding, see News Analysis: A new era of climate change reality—a rising tide. With the increase in extreme weather, urban areas have become more sensitive to flooding as flood water cannot permeate hard standing paving and be stored in the underlying soils. As a result, areas at risk of flooding can no longer be assumed to be just those located in close proximity to rivers and streams. A wide range of tools and datasets are now available to assess climate risk. Flood searches are an essential part of the due diligence process for identifying flood risk at a site-specific level and advising on how best to mitigate

Effects of flooding on underlying assets Flooding can give rise to a number of issues in the context of a banking or finance transaction. This Practice Note highlights the issues in relation to the following: • individual risks • planning policy • availability of insurance • borrower default It also explains the steps that a lender can take to mitigate the risks posed. Individual risks Flooding can cause significant damage to businesses, property and people. It can affect an individual’s decision whether to buy or rent a property. It can also have an effect on a property’s value. In ‘Deep Water Horizon’, 2018, the Royal Institution of Chartered Surveyors (RICS) discusses the increased frequency of flooding and how this can be addressed and managed through the surveying profession. The value of a house or commercial property may be adversely affected due to the risk of flooding. This is not only because of the damage that flooding can cause but also as a result of the costs

Introduction Flooding issues may arise in private company merger and acquisition (M&A) transactions which involve the acquisition of land. It is important to consider early in the transaction whether flooding issues may be relevant and, if so, to engage appropriate environmental and hydrological specialists to identify, assess and quantify the associated risks. These risks should be clearly allocated and managed within the transaction documentation, ensuring that the client fully understands both their extent and potential impact on valuation, liabilities and post-completion operations. Potential risks for buyers Share and asset purchase Flooding issues may influence whether the transaction is structured as a share or asset purchase transaction. In a share purchase, the buyer will assume all liabilities (such as environmental or regulatory) of the target company. Examples of liabilities that may arise include: • regulatory investigations and prosecutions where the target company has carried out works without the required flood risk permits or where water pollution has occurred as a result of flooding (see Practice Note: Environmental

Introduction This Practice Note provides an overview of issues relating to flooding that may arise in property transactions. It aims to provide information which will help clients to investigate flood risk at the property and to consider the relevant issues when buying or selling their property. For information on increased flood risk, climate change and the solicitors duty to warn their clients about climate related risks, see News Analysis: The legal duty to advise and warn about climate risk—developments for property lawyers. The Law Society of England and Wales published an updated practice note entitled ‘Climate Change and Property.’ The guidance articulates the Law Society’s view of good professional practice in relation to climate-related risks in property transactions, identifying physical, transition, and liability risks as potentially relevant considerations. It advises solicitors, within the scope of their instructions and competence, to consider whether it is appropriate to draw such risks to clients’ attention and to recommend climate-risk searches where relevant. Impacts