The conveyancer’s guide to sustainable new-builds in the UK

Annie Button has written an article looking at the conveyancer’s guide to sustainable new-builds in the UK.

The UK housing market has experienced significant shifts in recent years, particularly in the field of eco-housing as the demand for energy-efficient homes continues to rise. With the UK facing a housing shortage and growing environmental concerns putting pressure on the government and decision-makers, the focus on sustainability has become paramount in new housing plans and policies.

The UK is adapting to these challenges by placing sustainability at the forefront of new-build developments while addressing the complex issues surrounding housing supply, affordability, and environmental impact. But how does this affect the property market and what do conveyancers need to be aware of moving forward?

The rise of sustainable new-builds:

Sustainable new-builds are transforming the UK housing landscape, offering homeowners energy-efficient alternatives that reduce both carbon footprints and utility costs. In prioritising sustainability, these new-builds not only benefit individual homeowners with reduced energy bills, but they also contribute to the nation’s overall efforts to combat climate change and meet carbon reduction targets.

To ensure longevity and adaptability, new-builds are increasingly incorporating smart home technologies and flexible designs, from smart thermostats and automated features to ventilation systems and lighting. These features allow homes to adapt to changing lifestyles and technological advancements. Additionally, future-proofing involves considering the potential impacts of climate change, such as increased flood risks or heatwaves, and implementing appropriate resilience measures in the design and construction phases.

Smart homes offer a holistic solution to energy efficiency, but also to common problems such as mould which stems from insufficient ventilation and temperature control. Smart technology makes it easier to control humidity levels, reduce energy consumption, and minimise environmental impact, ultimately creating healthier, more comfortable, and sustainable living spaces.

The UK initiatives and their effect:

The UK government recognises the key role the housing sector holds in achieving its climate goals and addressing an ongoing housing shortage. A range of initiatives have been implemented and refined, to promote sustainability in new housing, including:

Stricter Building Regulations and Incentives

There are now more stringent energy efficiency standards for new homes, with stricter building regulations that mandate higher energy performance standards. Energy Performance Certificates (EPCs) have become a valuable tool for comparing the energy efficiency of properties, influencing both buyers and renters in their decision-making process.

Similarly, there are beneficial financial incentives such as the Smart Export Guarantee (SEG) which pays homeowners for any surplus electricity generated via renewable technology and exported to the grid.

With such measures now in place, conveyancers need to be well conversed, to explain and advise clients on all the implications of EPCs, as well as the conditions or obligations that may apply to relevant grants and incentives.

Sustainable materials and technologies

The UK is promoting the use of sustainable building materials, and innovative technologies in construction. Key examples include renewable energy sources like solar panels and wind turbines, energy-efficient appliances, sustainable building materials such as recycled materials and bio-based products to reduce the environmental impact of new housing.

Conveyancers are obliged to verify compliance with stricter building regulations, and navigate the legal aspects of integrated renewable energy systems, such as solar panel leases.

Planning reforms

The government is reviewing planning policies to prioritise sustainable development and reduce the environmental impact of new housing projects. One significant challenge is finding suitable land for new-builds, while preserving green spaces.

The debate between developing brownfield sites and greenfield areas continues, but often requires additional due diligence. Here, conveyancers will be required to investigate land use restrictions, zoning laws, and potential objections to development. All of these can lengthen the process and require greater attention to environmental and legal factors.

The power of the developer

When buyers purchase from a developer, rather than an individual, the developer holds more negotiating power. It’s essential to build experience in handling developer sales, as they differ significantly from dealing with individual sellers.

Conveyancing for a new-build home can be more complex than purchasing an existing property, given the risks and legalities associated with the all levels of the construction. Professionals in this field therefore need to be well-organised, and aware of the potential additional factors that may need to be addressed.

New-build transactions can be fast paced with housing developers often pushing for quicker conveyancing to allow them to access funds faster and continue their projects, or receive an earlier return on investment. If more time is needed due to legal work or involvement in a property chain, developers may be flexible if buyers can show progress or provide chain details.

Challenges facing sustainable new-builds:

Despite the many advantages offered by sustainable new-builds, they also face several challenges that could hinder widespread adoption.

Higher initial costs

One major obstacle is the higher initial costs associated with sustainable construction. While these investments often lead to substantial long-term savings on energy bills, the upfront expenses can be a deterrent for some buyers and developers. This can be particularly challenging in a competitive housing market where affordability is a key concern.

Buying off plan

Many new-builds are bought off-plan, meaning construction may not be complete, and delays or changes to the property can occur. These delays could cause mortgages to expire or affect the estimated completion date, which conveyancers need to manage carefully.

Skills shortage in the building sector

The shortage of skilled professionals in the field of sustainable construction sector can also pose significant challenges, with the lack of expertise leading to project delays as well as costs. Consequently, quality issues or inconsistencies in sustainability features can arise that will add further complexities to the conveyancing process. More vigilance may be needed when reviewing warranties, certificates and compliance documentation.

The performance gap

This is the discrepancy between a building’s predicted energy performance and its actual operational performance, which can greatly impact conveyancers. There may be the need to review and clarify energy performance certificates and sustainability claims, ensuring that clients are aware of any discrepancies. This in turn can influence negotiations, valuations, timelines for conveyancing transactions, and potential future liabilities.

The future of conveyancing in sustainable new-builds:

The UK’s shift toward sustainability in the housing sector presents both challenges and opportunities for conveyancers. As energy-efficient and future-proofed homes become central to new developments, the conveyancing process in turn must evolve to encompass new considerations and responsibilities.

The ability to thrive in this changing landscape demands the ability to stay informed of sustainable building practices, develop suitable expertise of the legal implications of new technologies and materials, and ensure due diligence procedures are enhanced. By remaining adaptable and knowledgeable conveyancers can guide and educate clients through the intricacies of purchasing eco-friendly new-builds and position themselves as an invaluable partner in the sustainable housing market.