Two back-to-back record hot summers have driven a sharp increase in damage reports tied to soil shift, prompting major UK providers to flag rising climate-related risk for property owners.
Aviva said claims peaked from July through September and kept climbing into October. Chief executive Amanda Blanc declined to give exact numbers, noting the surge exceeded normal seasonal variation.
Hastings Direct posted a 140% jump in August versus the prior year, while Axa called 2024 a “surge year” for foundation-stress claims, showing an industry-wide pattern.
The Association of British Insurers reported the average claim hit £20,000 in the April-June window, about £2,000 higher than a year earlier. Total payouts rose to £72 million, up from £60 million.
Despite the rise, Aviva recorded a 19% increase in general-insurance premiums, reaching £11.8 billion in the third quarter, reflecting broader market pressures on property values and coverage costs.
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The British Geological Survey estimates up to 11% of UK homes, more than 4.2 million dwellings, could face ground-movement risk by 2070 as climate change intensifies. August 2024 was the joint hottest month on record globally.
Dry summers cause soils to contract, weakening foundations, while wetter winters make the ground expand, potentially creating structural cracks. Older structures with shallow footings and those built on clay-rich earth are especially vulnerable.
London, Essex, Kent and the Oxford area rank among the most exposed zones. Blanc urged owners to check drains, pipes and gutters, fix leaks promptly, and manage nearby trees and plumbing to lessen the hazard.
The property market feels the strain, with transaction activity reacting to shifting risk assessments and lenders adjusting financing terms accordingly.
Investors holding older assets in the identified zones watch valuations closely, as continued claim growth may pressure future premium levels and influence resale prospects across the affected regions.