Deputy prime minister John Prescott’s plans to build 200,000 affordable homes in the South East are in jeopardy after it emerged that at least 10,000 were at high risk of flooding. Insurers are warning that unless the government introduces rigorous planning controls houses will be uninsurable or premiums so high they will put buyers off. The Association of British Insurers (ABI) said that one third of the 200,000 planned homes were located in the flood plain. This could add £55million to the annual flood bill unless steps are taken. Sebastian Catovsky, policy advisor at ABI, said that local authorities frequently flouted Environmental Agency advice by allowing developments on areas at risk of flooding. Catovsky said that 5,400 houses in the Thames Gateway and 3,460 in the South Midlands would be at significant risk.