RESIDENTS of flood-hit properties in North Yorkshire are still counting the cost after seeing huge increases in their insurance premiums.

The riverside Topcliffe Mill development, near Thirsk, was flooded in 2012 after levels of the River Swale rose.

Martin Graham, who owns a flat, told the BBC that his annual insurance for the building had increased from £1,500 to £26,000 since the flood.

The additional cost is divided between the owners of the dozen flats, who each now pay a £400 monthly service charge.

Mr Graham described the cost of insurance as “unsustainable” and told the BBC: “It’s a significant impact on the finances and people are struggling to make those payments.

“I know some owners are attempting to sell their flats, but they will be selling them at a loss.

“Because anybody who is out there looking to buy a property are not only looking at what the purchase price would be, but the service charge on top of that - and that would put a lot of people off.”

A government-supported Flood Re scheme was approved by Ministers in 2015 to help householders in flood risk areas who were struggling to find affordable flood insurance.

It works by collecting an annual tax from home insurers which generates a £180m fund.

This enables the scheme to take responsibility for the flood risk element of householders’ policies and use the fund to reimburse insurers.

However, Thirsk and Malton MP Kevin Hollinrake said that the Topcliffe Mill tenants had been caught in a ‘gap’ in the scheme because the building contained more than three flats.

He is now calling to extend the scheme to cover places like Topcliffe Mill.

Flood Re chairman Mark Hoban said it was important to note that any changes to the scope of the scheme would need amendments to legislation.

He added: “In Flood Re’s first six months in operation, it had taken on over 53,000 policies and is currently on track to take on 130,000 policies by the first anniversary.

“Flood Re is changing the market for those living in flood risk areas across the UK.

“Our priority is to ensure that people living in areas at risk of flooding have more affordable flood cover and it is important to remember that, if you are living in a flat, you can get contents insurance that is backed by Flood Re.”

Mr Hoban advised householders in flood-prone areas to visit the Flood Re website to see which insurance providers are participating and find out more about the scheme.