The increasing impact of climate change on property transactions and what solicitors need to do

An increase in extreme weather and the resulting tightening of regulations are impacting property transactions. Solicitors are giving careful consideration to all property transactions, particularly since The Law Society published a Practice Note in June 2025 ‘Climate change and property’, and all clients should be aware of how climate change can impact aspects of the property transaction.

Solicitors will now be advising on potential ‘liability risks’ - the legal implications arising from the physical and transition risks.

Physical risks include extreme weather, such as flooding, subsidence and coastal erosion, which can have a big impact on the structural integrity of a property, or the infrastructure upon which the property depends.

Transition risks arise from activities relating to the UK’s 2050 net zero goal, and in a property context can include issues such as legislative changes to the minimum energy efficiency standard regulations. This is mandatory for all properties and subject to change at the moment (to become stricter). All landlords and property developers need to consider the implications of MEES, particularly where the property has a substandard EPC rating.

Liability risks describe the impact which may arise from physical or transition risks, potentially leading to a legal liability or obligation. For example, the cost of upgrading a property which is substandard under the MEES. 

Your solicitor cannot advice on physical risks of climate change – these are for your surveyor to examine and report on. However, your solicitor can flag the impact of these potential liability risks and how they may impact in your transaction in the report on title.

Your solicitor may consider the following, depending on whether you are buying, acting as landlord or tenant, or borrowing:

• EPC thresholds – these thresholds are likely to be raised in the near future
• increased Insurance premium, in particular where there is an increased risk arising from a property’s location (such as flooding where located near a river bank)
• repair obligations – these should ensure that there is a clear expectation as to who is responsible for any repairs and whether these are covered by insurance
• green provisions – these are becoming increasingly common and carefully considered
• planning permission – consideration will need to be taken as to the structural longevity of the property and the long-term effects of any natural and environmental factors potentially impacting or delaying development

Madeleine is a trainee in the Real estate, planning and construction team.

Ilana Cohen is an associate in the Real estate planning & construction team.