Residents said the message devalued properties and sent insurance premiums up.

Gosford City Council last night moved to withdraw a message on planning certificates saying: “This land has been identified as being potentially affected by sea level rise of up to 0.9m by the year 2100”.

The message triggered more than 500 phone calls and letters from residents concerned about the “lack of consultation, doubt regarding the credibility of the science that supports the sea level rise projections, the effect the encoding may have on property prices and, more recently, the effect on insurance premiums”, council documents said.

ALP Councillor Jim Macfadyen said there were 56 NSW councils affected but only 16 had put the message on planning certificates.

“There has been a lot of concern and angst, of property prices falling because of that certificate, concern of insurance companies increasing their premiums, all for a report that looks at an event that may happen in 100 years,” he said.

“It’s fairly tough that we did that, I think common sense prevailed last night.”

Mr Macfadyen called on the NSW Government to issue clear regulations for all affected councils.

“We withdrew them until such time as the State Government ensures the message is consistent across NSW,” he said.

Coastal Residents Incorporated secretary Pat Aitken said home owners had lost hundreds of thousands of dollars on the values of their homes, and insurance premiums had risen up to 1000 per cent.

He said he was shocked at suggestions the decline in property values was because of the GFC and had nothing to do with sea level rise policies.

“The message had a devastating impact on their wellbeing and their livelihoods, people are faced with crystallised losses,” he said.

“You can’t bury your head in the sand, there has to be away through it. We haven’t seen a real effort to consult and engage. The NSW Government must intervene. There is no consistency in any council that has done this – but there is no way in the world they would get away with it in Woollahra.”

A report by a council officer said the council could face court action by landholders who believed the loss of value was directly because of the sea level rise warning.

The same report also said that the council could find itself before the court if it removed the information, saying there is “a risk that a person may instigate action if that person considers that council was aware of a matter and did not disclose that information to the person’s detriment”.

Four councillors voted to remove the S.149(5) Planning Certificate Message relating to sea level rise until the NSW Government regulates that all councils in NSW to provide a clear direction to property owners affected.

Two voted against the move, and four councillors did not attend the meeting.