In this paper, 2-dimensional, hydro-mechanically coupled finite element analyses are performed to assess the performance of an engineered barrier aimed at reducing flood risk in urban environments. The barrier consists of an unsaturated compacted soil layer and a drainage layer of a coarse granular material, constructed on top of the natural soil, in this case London clay. The barrier is vegetated so that its water storage capacity is renewed after each rainfall event. Sophisticated boundary conditions are used to simulate the effect of precipitation and evapotranspiration. The rainfall water infiltration and the initiation of water run-off during intense precipitation events are simulated. The effect of the hydraulic properties of the unsaturated soil layer on the performance of the system is investigated by means of parametric analyses. The effect of precipitation rate and geometry of the barrier is also discussed. Design recommendations for the properties of the compacted layer and the dimensions of the system are given at the end of the paper.