Industry bodies are demanding that new flood regulations should be delayed because of the implications for almost all flats and for the whole of the private rented sector.

Environment Secretary Liz Truss has been asked to delay the final regulations of the flood insurance scheme, Flood Re.

Flood Re, the deal struck between the insurance industry and the Government, is billed as a scheme to protect home owners from high flood insurance premiums.

However, it excludes all private rented sector properties and almost all leasehold properties from being able to access affordable buildings insurance.

DEFRA has pledged to carry out research into how the excluded groups will be affected, but has not yet published the results.

The letter urges the Government to withdraw the regulations, the final stages of which are being laid this week, until the research has been concluded.

The letter has been signed by the British Property Federation, Residential Landlords Association, Leasehold Knowledge Partnership and Association of Residential Managing Agents.

The letter criticises the “somewhat arbitrary and inconsistent criteria” which has determined the scope of Flood Re, and questions why there is “no alternative solution for these excluded properties”.

Melanie Leech, chief executive of the British Property Federation, said: “It is deeply unfortunate that Government intends to press ahead with Flood Re while its research into the impact on excluded groups is incomplete.

“Rather than force through this legislation, which will leave almost 7m flats and private rented homes excluded from what is supposed to be a domestic reinsurance scheme, we urge the Government to first finish and publish its research so that a proper appraisal of the facts can be made.

“The exclusion of leasehold properties seems particularly arbitrary, and we have seen no good justification as to why people who own their own house should be able to access affordable buildings cover, while people who own their own flat should not.”