Client Care Letter: Homebuyers

Introduction

There are many risks that can affect your property which should be investigated fully ahead of exchange of contracts. 

It is the policy of our firm to ensure that we provide detailed due diligence to protect the interests of both you and your lender on your proposed property purchase. Homebuyers ensures we comply with Law Society guidance on contaminated land, flood risk, radon and railways and climate change.

As part of our range of searches we will order a Groundsure Homebuyers to identify whether there are any specific risks relating to the issues of climate change, contaminated land, flooding, ground stability, and radon. Homebuyers will also highlight any house extensions or planning projects, planning constraints such as Conservation Areas and National Parks, proposed rail infrastructure such as HS2 and both Crossrail projects (1 & 2), large scale energy infrastructure such as fracking sites and wind farms, active rail lines and subways. Where available an EPC will be provided. The report provides detailed information and a professional opinion.

Climate change (ClimateIndex)

It is estimated that £525 billion worth of property could be written off due to climate change in the long term. The ClimateIndex module provides a property specific rating based on a number of physical perils; river, coastal and surface water flooding, natural instability from shrink-swell soils and coastal erosion. The risk is presented over key time horizons (5 and 30 years) used by the Bank of England in their stress testing scenarios.

Contaminated Land

Our industrial heritage and the drive to build on brownfield (previously used) land has meant that increasing numbers of properties have been built on land that could be contaminated. This could affect the value of the property, could lead to adverse health issues and under current legislation you could be responsible for paying for the clean-up of that land.

Note: If the contaminated land results identify a potential risk, this does not indicate the purchase should not proceed. Further enquiries can be undertaken of the sellers and other parties to either amend the result, provide further information to make an informed decision or, if appropriate, consider obtaining environmental insurance. Specific recommendations can be found within the Groundsure report.

Flooding

Flooding can occur from a variety of sources including surface water, and you don’t have to live near a watercourse to be affected. In England and Wales 5.9 million properties are at risk of flooding, with the average cost of flood damage being £28,000. Home insurance in flood prone areas may be more difficult to obtain, however the introduction of Flood Re means affordable insurance should be obtainable through a registered insurer.  A flood search will highlight the risks from river, coastal, surface water and groundwater flooding as well as any flood defences and historic flood events, and should give you an indication of whether insurance will be available and affordable.  

Radon

Radon is a colourless, odourless gas which has the potential to cause adverse health issues to those occupying the property.  It is the second biggest cause of lung cancer in the UK after smoking. 

Standard CON29 Local Authority searches will cover the risk of radon gas, however due to the resolution of the data used it cannot be fully relied upon to assess the risk at a property- specific level. The data used by Groundsure is far more detailed radon information than the information used in the Local Authority search which highlights the radon potential at the specific property and if any protection measures are required.

Ground Stability

Ground instability can seriously impact the structural integrity of a property, in addition to the value and insurability. The report will highlight any natural and mad-made subsidence risks to property.

HS2

High Speed Two (HS2) is the UK’s new high speed rail network linking London, West Midlands, Leeds and Manchester. Main civils construction on Phase 1 (London to Birmingham) of the project began in 2019, and it is currently anticipated that this phase will be fully operational by 2026.

Originally intended to link Birmingham and Crewe (Phase 2a) and Crewe to Manchester (Phase 2b) however it was confirmed in 2023 that all of Phase 2 has been cancelled. 

The property may be in an area that is subject to compulsory purchase to allow the railway to be built. Alternatively, it may be impacted by noise and vibration or visual intrusion from construction and operation – an indication of which is included within the report.

Crossrail 1

Crossrail 1, known as the Elizabeth line is a new railway linking Reading and Heathrow in the west through 42km of tunnels through London to Shenfield and Abbey Wood in the east. The construction of the project is now complete and fully operational. Properties above or in proximity may experience issues arising from operational noise and vibration.

Crossrail 2

Crossrail 2 is a new proposed railway linking Surrey and Hertfordshire via an underground tunnel through London. Crossrail 2 marks the next step in the ambitions to improve rail infrastructure and join major counties to the capital. The Crossrail 2 route, safeguarding areas, worksites and headhouses are all included. Please note that this scheme is currently on hold due to the lack of a viable funding package, however safeguarding directions will remain in place.

Railways and subways

Active, historic and abandoned railways and tunnels, the London Underground and other subway systems have the potential to cause noise and vibration to properties in close proximity as well as providing essential transport links. Abandoned railways also have the potential to be re-opened in the future. 

Energy

Standard searches will not report on issues arising from energy activities. The energy data contained within Groundsure reports will provide insight on the proximity of all existing and proposed major energy infrastructure up to 10km from the property that may have an impact on value or your enjoyment of the property. These include major projects such as hydraulic fracturing (‘fracking’) sites, large scale wind farms and power stations as well as smaller scale infrastructure.

Due to changes in Trespass Law as part of the Infrastructure Act 2015, oil and gas companies will be given automatic access for gas and oil development below 300m without having to seek land and home owner’s permission and leaving them without legal recourse.

Planning constraints

Areas of environmental, cultural and visual sensitivity, such as Conservation Areas, Listed Buildings and National Parks are a great addition to an area, but they could also impede or restrict certain developments.

Next steps

Where a potential risk is identified or next steps are provided we recommend including those in your report on title.