14 July 2025
In response, The Law Society has recently issued new guidance to help solicitors and property professionals manage climate-related risks in property transactions more effectively.
We understand the growing importance of environmental considerations when buying, selling, leasing, or developing property. Here’s what the latest guidance means for clients and industry professionals alike.
Understanding the Risks
Climate change poses a range of risks that can directly impact the viability and value of property. The Law Society identifies three key categories of concern:
1. Physical Risks
These refer to direct environmental impacts such as flooding, coastal erosion, wildfires, heat stress, and ground instability. Properties located in high-risk areas may face issues with insurance coverage, long-term sustainability, and resale value. Solicitors are advised to ensure these risks are properly investigated and disclosed before completion.
2. Transition Risks
As the UK and Welsh governments continue to introduce policies to address climate change, legal and regulatory requirements for property owners are evolving. This includes changes to energy efficiency standards and emission reduction targets. Meeting these standards may incur additional costs and affect the valuation of properties.
3. Legal and Liability Risks
Property owners could face legal consequences if they fail to manage or disclose climate-related risks. Increasingly, buyers are commissioning climate risk surveys to better understand the environmental factors associated with a property before proceeding with a purchase.
4. MEES: Minimum Energy Efficiency Standards
Since 2018, it has been unlawful for landlords in England and Wales to lease residential or commercial properties with an Energy Performance Certificate (EPC) rating below “E”, unless a valid exemption is in place. As of April 2023, this rule now applies to all existing leases, not just new ones.
If a property is rated F or G, it cannot legally be let without upgrading its energy efficiency. The government is also planning to tighten the rules further, proposing a minimum EPC rating of C by 2027, and B by 2030.
Non-compliance carries serious consequences, including fines of up to £150,000 per property.
During any property transaction, it’s essential for legal advisers to:
Landlords should begin reviewing their portfolios now and consider whether they’ll need access rights to carry out future energy upgrades. Tenants, meanwhile, should ensure service charges don’t unfairly pass these costs onto them.
The Role of Solicitors in Managing Climate Risks
Solicitors play a critical role in helping clients navigate the legal implications of climate change in property transactions. The Law Society guidance encourages legal professionals to:
By proactively integrating climate risk considerations into the conveyancing and advisory process, we can help clients make more informed decisions and reduce future liabilities.
How We Can Help
Whether you're purchasing your first home, investing in commercial property, or developing land, our property team can guide you. We stay up to date with evolving regulations and provide clear, practical advice to help you navigate the complexities of today’s property market.
For professional legal support with residential or commercial property transactions, contact our team today.
Call us at 01202 530875
Or visit www.absolicitors.com to learn more.
