New research highlights growing industry consensus on climate risks in property transactions

A new report from Landmark Information Group reveals industry-wide concern for climate risks as 72% of property professionals say their clients are very concerned with the potential threat of climate change when buying a property. 

Landmark Information Group has today released a new report that shows climate change is now a critical consideration for professionals across the property industry. The majority of 150 respondents (91%) – mortgage lenders, estate agents, and conveyancers – said that recent climate events have impacted how they advise clients to consider climate-related risks and how they could affect their home.  

The research reveals a consensus among the three sectors that the impact of climate change can no longer be ignored. The top concerns for property professionals’ clients are flooding (60%), energy performance (58%), local planning/nearby developments (58%), subsidence risk (49%), negative impact on insurance or mortgage offers (41%), and risk to the property itself (31%).  

Key findings from the report include: 
    • A problem shared: Both estate agents and conveyancers were most concerned about flooding at 66% and 62% respectively, followed by energy performance at 58% and 62% and thirdly local planning/nearby developments at 54% and 58%. 
    • A different take: For lenders, local planning/nearby developments was their biggest concern (58%), followed by energy performance (56%), and flooding and coastal erosion both at 50%. 
    • Mortgage Lenders and their clients are the most concerned: 82% of mortgage lenders say their clients are worried about climate risks, with 98% of lenders concerned about the potential decline in property value across their mortgage portfolios due to climate change. 
    • Estate Agents are aware of what their clients want: While estate agents report lower levels of client concern (60%), they highlight how the likes of insulation and energy performance have become more important to clients, with 72% noting increased demand for energy-efficient homes. 
    • Conveyancers are focused on net zero: 96% of conveyancers have adapted their advisory processes in light of climate events, and 48% now have a published net zero strategy – a significant increase from just 17% in 2023. 
    • Climate risks need to be addressed now: Close to half (45%) of respondents agreed that climate risks should be reported upfront in property transactions, particularly through estate agents, in order to inform buyers and prevent disruptions later in the process, reducing the length of time it takes to buy and sell homes. 
    • The rise of green mortgages: Over a third (38%) of mortgage lenders said that more and more consumers are showing interest in green mortgages. 

The findings from the report confirm that climate considerations need to be embedded into all facets of planning, purchasing and lending decisions. 

Chris Loaring, Sustainability Director at Landmark Information Group, said:

“It’s evident that climate change needs to be considered in the decisions we make as an industry.

“The built environment contributes to around 40% of the UK’s carbon emissions and the property sector plays a critical role in addressing this challenge. 

“Our research, surveying estate agents, conveyancers, and mortgage lenders, shows a consensus that climate change is an urgent reality, and property professionals must go beyond net zero.

“We must empower customers with robust information on how climate change could impact their property choices, ensuring they can make well-informed decisions.

“Our commitment is to lead the industry towards a sustainable future.” 

 

Kindly shared by Landmark Information Group