The implications of flood risk in property transactions

Who’s at risk?

According to a report released by The Environment Agency in 2009, around 5.2 million properties in England are at risk of flooding. This is as many as one in six properties in the country. They estimate that over 5 million people live and work in 2.4 million properties that are at risk of flooding from rivers or the sea, one million of which are also at risk of surface water flooding. Whilst a further 2.8 million homes are susceptible to surface water flooding alone.

The heightened threat of flooding to both coastal and inland communities is on the rise due to climate change. In the past decade, there has been a noticeable shift in weather patterns, with traditional seasonal cycles making way for an unprecedented level of extreme weather conditions, resulting in record rainfall and increased cases of flooding.

Flood risk and the law

The law is a living document, and as such, it is able to adapt and adjust to meet the challenges of our ever-changing modern lives. It has become apparent over the last few years that flood risk is becoming a growing area of focus within the law. Last year The Law Society of England and Wales confirmed conveyancing solicitors’ overall duty to advise on climate legal risks when acting on transactions. This means conveyancers should consider the impact of climate-related events on conveyancing transactions and assess whether a climate search should be undertaken on a property.

It is, however, important to note that conveyancers and solicitors, in general, have been urged not to advise on climate change physical risks where it is outside their knowledge or qualification. Although conveyancers have their client's best interests in mind, this guidance has been put in place because, generally speaking, solicitors are not experts on climate change and so should not be treated as such.

The importance of a flood risk search

Flood risk searches offer valuable insights into a property’s flood history and the probability of future flooding incidents. While environmental searches may touch upon the risk of flooding, they lack detailed information. A flood risk report, on the other hand, provides a more comprehensive analysis tailored to the specific property.

Obtaining a flood risk report becomes particularly essential when acquiring a property in an area with a known history of flooding. If the report indicates a high level of risk, it is imperative to inform both your insurer and lender. The potential risk of flooding can impact your insurance premium and mortgage application.

Flood risk reports contain a wide swathe of data, all of which can be useful to a homeowner. Typically, a flood risk report will contain the following:

• Flood history of a property
• River and coastal flood risk data
• Surface water flood risk data
• Groundwater flood risk data
• Current and future proposed flood defences
• Flood risk insurability
• Expert risk assessment
• Preventative measures and guidance

Advice for sellers

When selling a house in the UK, sellers are obligated to disclose information about flooding through the TA6 property information form. In addition to acknowledging past occurrences of flooding, sellers must also provide details about the impact it had on the house, garden, driveway, and surrounding land. This transparency offers potential buyers more insight, aiding them in making informed decisions. Should a seller provide false information, mislead, or neglect to disclose known flooding events and the sale is finalised, the buyer may have grounds to file a claim for property misrepresentation.

Our conveyancers are here to help
Whether you are buying or selling a property, our residential property team is here to help! If you have questions about flood risk searches, TA6 forms, or property misrepresentation, get in touch with SO Legal today.

We have offices in Brighton, Eastbourne, Hastings, London, Uckfield, and Ulverston, and our residential property solicitors work with clients up and down the country.