Climate Risk Enters the Conveyancing Process

The upcoming Law Society Practice Note will require conveyancers to conduct environmental searches for newly specified climate change risks—heat stress, water stress and drought, and wildfire. This is a significant step in recognising the growing relevance of climate change to buyers, lenders, and insurers in property transactions.

Here’s why they matter:

1. Heat Stress and Property Vulnerability

• Urban Heat Islands (UHIs): Properties in urban areas with little green space may experience excessive heat, increasing cooling costs and reducing comfort.
• Structural Damage: Prolonged heat can affect building materials, leading to cracks in brickwork, asphalt degradation, and even subsidence in certain soils.
• Health: Extreme heat can make properties less desirable, particularly for vulnerable residents like the elderly or those suffering respiratory issues.

2. Water Stress and Drought Risks

• Reduced Water Supply: Areas with high water stress may face restrictions, affecting daily life and property values.
• Soil Shrinkage and Subsidence: Drought can dry out clay-heavy soils, leading to ground movement that causes foundation damage. Subsidence is a major insurance risk.
• Landcover & Green Spaces: Homes reliant on local water sources for gardens or agriculture may struggle to maintain green spaces, reducing appeal and functionality.

3. Wildfire Risks and Property Safety

• Increasing UK Wildfire Incidents: Climate change has made wildfires a growing threat, particularly in rural and semi-rural areas.
• Property Damage: Homes near grasslands, heathlands, or unmanaged woodlands may face rising insurance costs due to higher fire risks.
• Mortgage & Insurance Concerns: Lenders and insurers may require additional fire mitigation measures or charge higher premiums in high-risk zones.

Why This Matters for Conveyancing

• Legal Due Diligence: Buyers need to be informed of risks that could affect the long-term viability and safety of a property.
• Financial Risks: Properties in the very high-risk zones may face higher insurance costs, lower resale values, or mortgage restrictions.
• Futureproofing: Awareness of these risks helps buyers and investors make informed decisions, ensuring the sustainability and resilience of their property assets.

With climate risks increasing, this Practice Note will ensure conveyancers provide transparent, risk-aware property transactions, safeguarding both buyers and the broader market.