As climate change continues to impact our environment, understanding its implications on property is crucial for legal professionals. As extreme weather events become more prominent, and sea levels continue to rise, solicitors must play an even larger role in ensuring clients are provided with all relevant advice.
Most solicitors will advise their clients that a full suite of 'standard' searches should include an environmental search, which would reveal several risks including floor, ground stability, energy infrastructure and radon gas. Most solicitors will also know that a flood risk of one in 1,000 years is negligible and almost all London properties will have natural ground stability issues due to the clay soils. However, as climate change continues to impact our environment and extreme weather events become more prominent, and these risks become apparent, solicitors will have to ensure that clients are informed about potential (however small) risks which might arise.
The Law Society's supplementary technical note on climate risk and property provides valuable insights to assist with this.
New searches are being made available, which may become essential and, in certain scenarios, obligatory. The following should now be considered if appropriate:
Climate change searches information
Climate change searches vary significantly between providers. These searches utilise Representative Concentration Pathways to model possible futures based on greenhouse gas levels. The scenarios include levels which:
- Align with the Paris Agreement goals
- Represent the most likely trajectory
- Reflect a 'business as usual' scenario where no effort is made to reduce harmful emissions.
Projected physical climate change risks
Although solicitors are neither expected nor able to advise on the physical impact that climate risks may have on a client or their property, it is crucial to understand these risks to ensure the client is obtaining the relevant professional advice appropriate for their scenario.
The Law Society highlights several physical risks associated with climate change that are projected to affect properties, although the government's UK Climate Change Risk Assessment 2022 assesses 61 climate risks:
Flood risk: currently, 6.3 million homes and businesses are at risk, potentially rising to 8 million by 2050.
The main driver of this increase is coastal flooding, which can sometimes combine with other types of flooding to compound the impact. Solicitors should already be familiar with flood risk as an insured risk in standard commercial leases. However, it may be less well known that:
Public bodies do not have a legal duty to maintain or improve river and coastal defenses, and as such, it may be important to advise clients of this when considering potential future cost and risk when buying coastal properties.
Coastal erosion: significant risk to properties, with 3,500 at risk by 2055, increasing to 10,100 by 2105.
Ground stability: The British Geological Survey has reported increasing subsidence issues, particularly in London and Kent.
Clients may not be aware of particular regional issues when dealing with property, even if they have an understanding of nationwide climate risks. It may often prove helpful for professionals to familiarise themselves with recurring and emerging risks, and build relationships with industry partners qualified to give clients the best advice on the physical risk.
Heat stress and overheating: rising temperatures, with summers projected to be 60% drier and up to six degrees hotter, affecting building design and infrastructure.
Developer clients with entrenched building practices, for example, may benefit from seeking specialist advice not only on the physical risks to their buildings, but also legal advice in relation to their liability to future owners or tenants, and the duty of care they may owe to use appropriate materials in light of developing climate risk.
Water stress, drought and wildfires: there is increasing water demand and reduced availability, particularly in the southeast, and wildfires are becoming more frequent and severe due to climate change, affecting various regions. As water stress and drought become more prevalent, this serves to further increase the risk of wildfires.
With the apparent undersupply of housing continuing in the UK, there is an increasing need and appetite to develop more housing in previously undeveloped areas. This interaction between rural and urban land could see more developments exposed or near to areas prone to wildfires.
As the level of wildfire risk grows alongside the likelihood of properties being located in high-risk areas, it is increasingly important for clients developing, purchasing and insuring these properties to be aware of the risk and protect their interests accordingly with the appropriate legal advice.
Conclusion
Understanding and mitigating climate risks is essential for property owners. By staying informed and proactive and obtaining the correct advice, property owners can obtain valuable guidance and help in navigating the challenges posed by climate change.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
