A lack of insurers willing to cover houses in flood-affected areas could lead to a dramatic fall in property values, it has been claimed.

A new report from the Royal Institution of Chartered Surveyors claims that property prices could fall by as much as 80 per cent in areas hit by flooding - with a lack of ready insurance cover leading to a severe decline in overall value.

This comes despite the fact that most flood-affected households should have their insurance claims paid out this time.

"Buyers need buildings insurance before lenders will grant a mortgage, so uninsurable homes could be rendered unsaleable," a spokesperson told the Times.

"This will have a knock-on effect on the value of the property."

Chris Jordan, of specialist broker Bureau Insurance, similarly predicts that problems could lie ahead for those whose homes have been hit by the recent floods.

"Those who have been hit by the recent floods won't have problems now; it's when they come to renew their insurance or sell their houses that they'll face big problems," he said, in an interview with the Times.

"Hundreds of thousands of people could be stuck with homes they can't sell because they are refused insurance."