What is an Environmental Search?

An environmental search is essential to the conveyancing process when buying a property. Its primary purpose is to determine whether the property has been built on contaminated land or if the area is susceptible to risks such as flooding, landslides, or subsidence.

The search also checks if the property is located in a radon-gas-affected area or if the land was previously used for industrial purposes or as a landfill site.

Your solicitor will instruct an environmental agency, such as Groundsure, Homecheck, or Landmark, to search. A standard search typically costs £50 to £100, and results are usually available within a few days to two weeks.

Why is an environmental search so important?

Environmental issues are becoming increasingly important to property buyers, especially as climate change continues to dominate the headlines. From a practical perspective, an environmental search can uncover critical information that might lead to significant costs for a property owner if they are later deemed responsible for cleaning up hazardous or toxic land.

Additionally, properties in areas prone to flooding or landslides can face higher insurance premiums.

If you’re using a mortgage to complete your purchase, your lender will not release funds until an environmental search has been conducted and they are satisfied that there is no risk to the property’s future value.

What happens if an environmental search identifies potential risks?

If an environmental search returns information that raises concerns, the lender will likely ask your solicitor to organise further searches on the surrounding area before they can complete your mortgage application. 

For example, if a search highlights a history of flooding near the property, your lender may require a more detailed flood risk assessment. This could involve examining river and coastal data and reviewing insurance records to determine the number of previous claims made in the area.

In the worst-case scenario, your mortgage lender might decline to proceed with the application due to the high risk to the property’s value, potentially ending the purchase process. Alternatively, the lender might reduce the amount of the loan originally agreed upon if the risks are deemed too high.

On a positive note, this information could give you leverage to renegotiate the sale price with the seller, armed with the evidence produced by the search results.

If you encounter problems from your environmental search, speaking to a broker is a good idea. They can advise you on the next steps to take and potentially find lenders willing to go ahead with your application.

Potential hazards an environmental search might uncover

An environmental search plays a crucial role in identifying various hazards that could affect a property, each with its own set of implications.

Below are a few key risks:

• Flooding: Identified through historical data and geographical analysis, flooding risks can indicate potential water damage and result in higher insurance premiums.
• Landslides and subsidence: Often related to the property’s location on unstable land or areas with a history of quarrying activities, these risks pose significant structural threats to buildings.
• Radon gas: This naturally occurring radioactive gas is found in certain geological formations. It poses health risks and may require mitigation measures to reduce indoor concentrations.
• Contamination: The historical use of land for industrial purposes or as a landfill site can indicate potential contamination with hazardous substances, which might require costly clean-up operations to make the land safe for residential use.

How does it differ from other conveyancing searches?

In addition to a title search on the land registry, there are three main conveyancing searches your solicitor will complete:

• Local authority 
• Water Authority 
• Environmental

Each search serves a distinct purpose and is considered mandatory by mortgage lenders. For example, a water authority search focuses solely on how the water supply enters and leaves the property.

While the local authority and environmental searches gather information about the surrounding area, they differ in focus. A local authority search primarily addresses planning permissions, transport links, and preservation orders, whereas an environmental search examines potential risks such as flooding, landslides, subsidence, and land contamination.