A HOUSING expert has warned property prices in parts of Oxford could halve if residences become uninsurable because of a risk of flooding.

The insurance industry said it could not guarantee flood cover would continue for people living in high-risk properties in the city after 2013.

Areas of Oxford, notably along the Thames, including Osney, Botley and Jericho, appear on Environment Agen-cy maps as being likely to suffer serious flooding more than once every 100 years.

Oxfordshire county councillor Stewart Lilly, former president of the National Association of Estate Agents, said: “If a property becomes uninsurable it can most certainly affect its value – perhaps by as much as 50 per cent.”

Until 2013 insurers are offering flood cover to high risk customers under an agreement called the Statement of Principles, brokered with the last Government, under whose terms the Government agreed to boost spending on flood defences.

But according to the Association of British Insurers, (ABI) the Coalition cut spending on ameliorating the risk of flooding from £2.15bn over three years from 2008-11 to £2bn over four years from 2011-15.

ABI spokesman Malcolm Tarling said: “We are exploring lots of ideas and are disappointed that more is not being spent. We are exploring possibilities of doing more with less money.

“But it cannot be denied that some people might receive letters informing them that flood cover has been withdrawn after 2013.”

South Hinksey resident and spokesman for the Oxford Flood Alliance Peter Rawcliffe has seen his home flood three times in the past decade but said it might not again for many years.

He added: “This does sound rather alarming. That said, there are so many variables in insurance that I can’t imagine homes will become completely uninsurable against flooding. It is a competitive market and you should be able to find an offer somewhere. Whether people would be put off buying a home that has no flood insurance, I don’t know.”

Defra spokesman Paul Leat said measures to tackle large-scale flooding were included in the Oxford Flood Risk Management Strategy, adopted by the Environment Agency last year, but admitted funding had not yet been approved.

He said: “We want insurance to remain available for all homes at risk of flooding, ” and added the agency was working with the Government, insurers, the National Flood Forum and local councils to ensure insurance remained widely available after 2013.

Environment Agency spoke-sman Peter Hutchence said it had secured £1.8m for short term anti-flood measures.