Climate change has become a defining factor in the UK property market, with almost every estate agent, conveyancer and mortgage lender reporting rising concern among clients about environmental risks, according to new research.
A survey of 150 senior property professionals by Landmark Information Group found that 99% said buyers are now worried about the impact of climate change when purchasing a home – a 27-point jump from last year’s figure of 72%.
For the first time, heat stress and energy performance have overtaken flooding as the leading areas of concern.
Some 65% of professionals cited energy efficiency as a primary issue raised by clients, followed by overheating risk (62%) and flooding (51%).
RECORD-BREAKING WEATHER
The findings mark a significant shift towards risks that apply to the wider housing stock, not just properties in high-risk flood zones.
The change comes after a run of record-breaking weather. The UK has recorded three of its five hottest years since 2020, with 2024 ranking as the fourth warmest since records began in 1884.
Analysts say the growing frequency of extreme weather events is directly influencing buyer behaviour, shifting climate risk from a specialist concern to a mainstream transaction issue.
FINANCIAL CONSEQUENCES
The financial consequences are already materialising. More than a third (38%) of conveyancers reported transactions falling through after prospective buyers changed their minds over climate risk.
Others warned of deals stalling when buyers could not secure mortgage finance (24%) or insurance cover (20%).
The survey also pointed to rising demand for earlier disclosure of environmental risks. Over half of professionals (51%) said climate risk should be reported upfront by estate agents — before conveyancing or mortgage reviews begin — up from 45% last year.
BUYER BEWARE
However, there remains no industry consensus on who should take ultimate responsibility for advising buyers. While most respondents favoured specialist environmental advisers, significant numbers argued the duty should be shared between agents, conveyancers and surveyors.
Chris Loaring, group sustainability director at Landmark Information Group, says: “Climate change has moved firmly into the mainstream of homebuying concerns.
“This shift is no longer hypothetical – we’re seeing real consequences in the market, from stalled transactions to challenges securing mortgages or insurance.
“Climate resilience is now a defining factor in property decisions, and the industry must be ready to respond.”
