By Charlotte Beugge

British homeowners whose properties are liable to flooding may next year find their homes are uninsurable - and therefore unsellable, according to a report in the Financial Times.

Home insurers have been committed to provide cover for existing customers in flood-prone areas but this agreement is due to end next year.

Under a statement of principles established in 2000 insurers are committed to providing cover if there are plans in place to reduce flood risk within five years and if the property was built before 1 January 2009, the newspaper states.

But this commitment stops in June 2013 and a new agreement has not been reached despite talks between the government and the industry.

If a house cannot be insured it makes it very hard to sell as no mortgage company will advance on a home that can't be covered. The Association of British Insurers says that around 200,000 homes in the UK are at high risk of flooding.

The report says that already, some with properties in affected areas are seeing their home insurance premiums rise and are also seeing their excesses increase to as much as £20,000.

A spokeswoman for the Department for Environment Food and Rural Affairs told the paper that it would continue to consider additional support for households facing increased premiums in the coming months and will make an announcement on the matter in the spring.