An expiring flood insurance deal has been extended by one month to allow for talks to replace the scheme to continue.
The original scheme forced insurance companies to sell their products to flood-prone areas on the condition that prevention systems had been put into place to reduce the likelihood of a recurrence of previous flooding events.
An existing deal was expected to expire imminently and would have left thousands of homeowners without insurance – or with highly inflated premiums.
Environment secretary Owen Paterson said: “We are aiming to conclude negotiations as soon as possible to ensure that households can continue to access affordable flood insurance.”
Former Labour environment minister Ben Bradshaw, however, criticised the government for failing to agree a deal with insurance companies earlier, saying: “The government has had three years to sort this problem out.”
Politicians had previously warned residents in flood-prone areas they may find it difficult to sell their homes or secure mortgages unless an extension was agreed by insurance companies, who are reluctant to lose money on costly flood payments – especially with increasing sea levels.