As climate change increasingly shapes the legal and commercial landscape, solicitors must adapt practices to address the emerging risks. The Law Society's recent guidance and practice notes provide an insightful framework for understanding and responding to climate-related challenges in property transactions.
Key highlights
The Law Society outlines three key categories of climate-related risks:
- Physical risks – tangible threats such as flooding, subsidence, and coastal erosion, which can directly affect property value and insurability.
- Transition risks – arising from policy, legal, and market shifts as the UK moves toward net-zero emissions.
- Liability risks – including potential claims against solicitors for failing to advise clients adequately on climate-related issues.
The guidance emphasises that solicitors should be aware of how climate risks intersect with their legal duties and client care obligations, but are not expected to become environmental experts. Property solicitors should integrate climate risk searches into due diligence to identify issues like flooding or energy inefficiency, helping clients make informed decisions. Tailoring advice to the specific transaction and client goals is essential—commercial leases may require energy compliance guidance, while residential buyers may need flood risk assessments.
What you need to know?
- Understand the long-term value and risk of the
property
Climate change can significantly affect property value over time. Properties in flood-prone or coastal areas may face higher insurance premiums, reduced resale value, or even become uninsurable. Clients should ask their solicitor whether climate risk searches have been conducted and what the results mean for their investment. - Energy efficiency and future-proofing
With increasing regulation around energy performance (e.g. EPC ratings), properties that are not energy-efficient may face legal restrictions or costly upgrades in the future. Clients should consider the energy profile of a property and whether improvements are needed to meet future standards or reduce running costs. - Access to insurance and lending
Some lenders are tightening criteria for lending on properties at risk of flooding or other environmental hazards. Clients should be aware that climate-related risks might affect their ability to secure a mortgage or insurance. Solicitors can help by flagging these issues early in the process. - Sustainable development and planning
considerations
For clients involved in development or commercial property, local planning policies are increasingly influenced by climate resilience and sustainability goals. Understanding these trends can help clients align their projects with future regulations and community expectations.
Climate change is no longer a peripheral issue—it is central to the practice of property law. By embedding climate awareness and considerations into client advice and transaction processes, solicitors can enhance their value, reduce liability, and contribute to a more sustainable legal profession.
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.
