Introducing the Landmark Climate Change Report: Helping property professionals, property investors and businesses to understand how climate change could impact a property.

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The report is property specific, based on a UPRN, and doesn’t stop with providing just data; delivered in an intuitive format Landmark Climate Change Report gives property professionals the ability to inform clients with advice and recommendations relating to climate change.

This is a snippet of a blog post written by Simon Boyle, a solicitor from Landmark Information Group, reflecting on thoughts post-COP 27. To read the full post, click here.

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The 27th Conference of the Parties held at Sharm el-Sheikh has drawn to a close. As with the previous COPs it has had mixed results. There was a positive development in the agreement to set up the loss and damage fund to help the poorest countries- but overall it did not deliver that which was urgently needed- a binding target on the big emitters whose economies are still mainly powered by fossil fuels. At the start of the conference Alok Sharma (President of the 26th United Nations Climate Change Conference and British Politician) warned that this was the last opportunity that world leaders had to ensure that the global temperature would not exceed 1.5 degrees c.

But with the failure to agree on binding targets, especially from the three biggest emitters China, US and India, it is looking almost certain that the critical 1.5°C goal set by the Paris COP in 2015 is not going to be achieved.

This should be ringing alarm bells across the world. We are already experiencing the effects of climate change from the 1.1°C rise that we have had so far. And of course, things will get a lot worse once we get to the 1.5°C of warming. But it is at least far better than a 2°C rise within the next 20 years.

That extra half degree additional increase may sound relatively modest but the global effects on both ecosystems and humans would be profound. For example, at 1.5°C of warming 8 % of plants will lose their habitable area but this doubles to 16% at a 2°C rise. A 1.5°C rise is predicted to destroy 70% of the world’s coral reefs but a 2°C rise will wipe them out entirely.

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You can read Simon’s full post on the Landmark blog page here. To read more blogs from Landmark, click here.

We would like to share the Q3 edition of Landmark’s Property Trends Report, which provides a complete summary of the 2021 property transaction pipeline from listings through SSTC, search and finally completion milestones, compared to 2019.  

The data this quarter captures the end of the SDLT holiday and observes the market as it tries to find equilibrium. 

Property search order-volumes were consistent across the quarter, with volumes marginally higher than 2019 figures: +3% in July, +4% in August and +2% in September. 

Other insights include:  

• Listings were down by an average of 9% compared to 2019 levels 
• Completions in September rose 44% above September 2019 levels, driven by the need to beat the Stamp Duty holiday deadline. 

This month’s edition of the Property Trends report will also include Landmark’s Demand/ Supply Variance (DSV) report, to provide deeper insights into how demand continues to outpace supply, where July was the only month where listings were marginally higher than SSTC – the first month since October 2020. 

We hope you find our trend reports useful. Please CLICK HERE to access a copy of the Property Trends report.

We’ve made it to the final instalment in our Risk Series, a series in which we have examined the top five conveyancing risks in more detail.

Over the past few months we have taken a deep dive into a different risk, be it flood, ground stability, planning or coal. Today our focus is on Energy & Infrastructure, written by Mark Taylor, Channel Manager at Landmark Information and environmental auditor with the Institute of Environmental Management and Assessment.

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The rebirth of infrastructure

Whilst other topics have been at the forefront of UK politics since 2016, one issue that has remained in the background – recently moving back into the spotlight – is large scale infrastructure projects. It isn’t just topical in the UK; in the United States, President Biden is also targeting massive national investment into its infrastructure.

Whilst not on the financial scale of the US, the UK Government is planning significant expenditure into infrastructure and the creation of a new National Infrastructure Bank. The hope is to not just improve travel services and access; the investment principles look to support wider objectives including regional and local economic growth and helping tackle climate change through clean energy projects (HM Treasury, 2021).

Infrastructure and Property

With most infrastructure plans, especially those of national significance and size, there are always likely to be two sides to the discussion.

Constructed over three phases, High Speed 2 will initially connect London to the West Midlands, the West Midlands to Crewe and finally to the north-west and north-east. Throughout the network, HS2 is expected to increase access and speed up commuter times while increasing the overall rail networks capacity. HS2 report that once fully operational, it is expected that 300,000 passengers will use the network daily (HS2, 2021).

Given the scale of the project across the country, inevitably some communities will be negatively impacted, with links to the potential reduction in some house prices. In response, HS2 have set up several schemes including rural support zones, homeowner payment zones as well as a ‘Need to Sell Scheme’ to compensate those affected. While these schemes look to help those affected by the proximity of the rail link route, they also acknowledge that infrastructure projects can have an impact on property value.

It is important to highlight that improved, modern and faster public infrastructure is also an enabler. It can improve social mobility, increase access to green open spaces and other amenities, but also speed up commutes allowing people to spend more time on the important things in life.

Crossrail 2 is an example where house prices have prospered. According to a 2017 report by Knight Frank, house prices along the route within in a 10-15min walk to a station from the period of 2008-2016 out-performed the market by 7% (Knight Frank, 2017).

Green Investment

One of the key elements of infrastructure spending across the next decade will likely be on sources of renewable energy.

The Paris Agreement, a legally binding international treaty on climate change was adopted by 196 Parties at COP 21 in 2015 (UNCC, 2021). Coming into force in 2016, the Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels.

On the 27^th June 2019, the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels (Gov.uk, 2019). To reach net zero by 2050 significant action will be required across a whole range of industries from construction to food waste, transport to energy production.

At the end of last year, the government announced its ten-point plan for a green industrial revolution, totalling a £12billion public investment (Gov.uk, 2020). A large focus of this will be on wind energy generation as the Government hopes to quadruple the output of offshore wind. However, the expansion of the wider renewable energy sector will likely be inevitable to meet the legally binding target.

Whilst some would argue as fickle, what a potential property purchaser sees as ‘value’ can vary from person to person. There is precedent for linking wind turbines to a reduction in property value; in 2014, research undertaken by the London School of Economics concluded that large windfarms can impact property prices by up to 12% (Guardian, 2014).

Our value of space

Whether you agree or not, it does prove the value in providing full transparency into the potential changes in the property surroundings during a property transaction, especially if that value is being based on a view that could be fragile and changeable. Our value of local green space has increased as a result of lockdown and the restrictions placed on movement. Lockdown has made us appreciate and reengage with the green spaces near to us and the value they bring to the places we live. If we don’t have it, one property trend suggests we’re now more willing to move for it.

Whether it’s a short-term response to the pandemic is yet to be seen, however, fuelled by the stamp duty holiday, it has been reported that homeowners have started leaving our urban centres in search of individual open space and the rural idyll. The last 18 months has left many rethinking what is important to us and the value we hold for having access to more space, the countryside and nature.

What is being reported and is it reasonable?  

Whether looking at energy or infrastructure projects, during conveyancing what is reported should be grounded and reasonable. Therefore, if something is going to be identified or alerted during a transaction, it needs to be for a good reason.

Crucially, Landmark environmental reports have fine-tuned the search radius of what they identify in the property surrounds for a conveyancer to raise to their clients. Intelligently, an alert is not just based on the potential physical impact of a feature on an area, but also the subject property’s location. For instance, as rural properties are likely to be more sensitive to changes in the surrounding environment when compared to urban (especially as there may be perceived value in a view or open space), we treat these differently.

From a conveyancer standpoint, there is a lot of value in this as you will have confidence that projects are not being identified in environmental reports over cautiously, while also providing robust information for your client.

Both Landmark’s Energy & Infrastructure report and their market leading All-in-One environmental report, RiskView Residential reacts to this, searching to a shorter radius in urban centres so not to identify an unlikely issue.

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References

(CNN, 2021) https://edition.cnn.com/2021/03/31/politics/infrastructure-proposal-biden-explainer/index.html

(HM Treasury, 2021) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/994437/UK_Infrastructure_Bank_Framework_Document.pdf

(City AM, 2021) https://www.cityam.com/budget-2021-sunak-pledges-22bn-for-new-infrastructure-bank/

(HS2, 2021) https://www.hs2.org.uk/why/capacity/

(Guardian, 2020) https://www.theguardian.com/uk-news/2020/aug/21/crossrail-delayed-again-until-2022-and-another-450m-over-budget-tfl-covid-19

(Knight Frank, 2017) https://content.knightfrank.com/research/520/documents/en/2017-4695.pdf

(GOV.UK, 2021) https://www.gov.uk/claim-compensation-if-affected-by-hs2

(UN, 2019) https://www.un.org/press/en/2019/ga12131.doc.htm

(UNCC, 2021) https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement#:~:text=The%20Paris%20Agreement%20is%20a,compared%20to%20pre%2Dindustrial%20levels.

(Gov.uk, 2019) https://www.gov.uk/government/news/uk-becomes-first-major-economy-to-pass-net-zero-emissions-law

(Gov.uk, 2020) https://www.gov.uk/government/news/pm-outlines-his-ten-point-plan-for-a-green-industrial-revolution-for-250000-jobs

(Guardian, 2014) https://www.theguardian.com/money/2014/apr/08/windfarms-reduce-house-prices-compensation#:~:text=Large%20windfarms%20can%20knock%20as,the%20London%20School%20of%20Economics.

We are delighted to introduce a new improved NSR Chancel policy with improved cover, which came into effect on 1st August 2021.

The Combined Residential and Commercial NSR Chancel Insurance (up to 2 million pounds) (Successor – Perpetuity) is only £19.86 including VAT and will replace the following products:

• NSR Chancel Insurance (up to 1 million pounds)
• Commercial NSR Chancel Insurance (up to 500 thousand pounds)
• Commercial NSR Chancel Insurance (up to 1 million pounds)

Your account manager will have already been in touch if you’ve been affected by this product change, but if you have any questions or comments, please email intro@onesearchdirect.co.uk or call us on 0800 052 0117 and we will be more than happy to assist you.

Thank you to those who’ve been in touch about our Risk Series, where we examine the top five conveyancing risks in more detail. We’re thrilled you’re enjoying it, and if you’d like us to cover a particular topic, please let us know.

Each week we analyse a different risk, and will discuss further in the Q&A session of our upcoming webinar. Today our focus is on Coal, written by Philip Huddleston MRICS, Director of PinPoint Coal Ltd.

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With changed economic and political influences, coal mining has now virtually ceased in the UK. Although there are a few proposals for underground mines in the pipeline (such as the proposal to mine Coking coal in Cumbria), this seems unlikely to change in the near future. Equally, the likelihood of any new quarried coal mining obtaining planning consent is remote. One of the largest operators, Hargeaves, recently announced their intention to wind down operations. Given this, we could be forgiven for asking why a coal search is still necessary? We’ll attempt in this article to explain why.

Mining Types

• Underground Mining. Mining coal below ground causes subsidence. With deep mining this lowering of the surface takes place over a relatively short period of time. This can manifest itself as tension or compression strains resulting in damage to buildings or, quite simply, a lowering of the surface and no damage at all. Shallower workings do not consolidate in the same way and the impact of these can continue for much longer, representing a continued present-day risk. If settlement from shallow workings occurs, it is most likely to manifest itself as a crown hole or sink hole at the surface. In most cases the 1991 Coal Mining Subsidence Act would provide some protection to the landowner. More information here.
• Opencast Mining (quarrying).With the planning system favouring development on brownfield sites, many houses are now being developed on such land. Coal Mining Subsidence legislation is unlikely to cover damage from this source. Any new sites can have an environmental impact.
• Mine Entries (shafts and adits). A past report cannot be relied upon. Following the Lofthouse disasterand the introduction of the Mines (Precautions Against Inrushes) Regulations 1979, a huge number of shafts and adits were researched and added to records. This continues today, with new entries constantly being added or adjusted.
• Coal Mining Geology. Under certain conditions mining can cause rocks near to the surface to have cracked open, leaving open fissures. These can be hidden below the surface deposits, which can fail and fall into the void.
• Subsidence claims. These are a valuable indicator of past damage from all the above sources and may also point to whether remediation has taken place or not.
• Mine gas. Rarely, there can also be issues caused by gas. Mine gas issues take two main forms.

Carbon dioxide and nitrogen combined, known as blackdamp, is produced from coal. This gas is heavier than air and although not poisonous it can cause death by displacing any oxygen. Under certain atmospheric conditions, this gas can rise towards the surface. Any entry to disused workings would be very dangerous and there have been examples of this in the past where people have entered these and suffered the consequences. Thankfully, now all known adits (the main problem) have been secured to prevent accidental access, but this can be as little as placement of a grill at the entrance, and is therefore capable of being removed.

The other more problematical gas is methane. This gas is lighter than air and finds its way to the surface very easily via any conduits present. These can be shafts, adits and crack or fissures in the rock. Again, where any such risks have been identified, remediation work is undertaken by the Coal Authority very often by venting the gas through a flue and in some instances commercially extracted.

Gas issues are reported in coal reports where they are known. It is not possible to predict otherwise where they might occur but properties that are near to shafts or adits, particularly those that have no recorded treatment, are the more likely locations.

The need to have good coal risk information

Coal reports are designed to make a purchaser aware of any risks from coal mining. They are structured around agreed reporting criteria. The criteria we use was designed and agreed by a committee comprising of the Coal Authority, the Law Society, the RICS and the Council of Mortgage Lenders.  Their aim being to bring consistency in reporting which prior to the agreement was poor, being left up to the individual surveyor making the report. This had led to inconsistency, error, bad press and of course litigation. The result was the CON29M questions mandated by the Law Society for use where a property transaction was happening in a defined coal mining area.

Quite apart from the recommendation from the Law Society to always make a search it is quite simply a necessity. Past reports cannot be relied upon because even today new information is being added – shafts being a good example of this.

When shafts or adits are recorded as being within 20M of a property, Landmarks Coal Reports include an additional free appendix that looks more closely at the risk and provides an assessment of whether the mine entry can affect the property.

With underground workings the area at the surface affected by subsidence is much greater than the area of worked coal. Predicting the zone of influence is a complex three-dimensional calculation based upon the depth and slope of the workings together with the surface terrain. To the best of our knowledge, only the Coal Authority and PinPoint Coal have been able to produce these which in turn enable them to produce their reports in seconds and always to the same high accuracy.

Landmark Coal Reportsare powered by PinPoint and provide all the standard answers required by the Law Society together with (as appendices) additional information about mine entries and claims when they are reported. The reports are supported by professional opinion from a Chartered Minerals Surveyor.

Obtaining a coal mining report enables the prospective purchaser to be made aware of the risks from coal mining and to see whether there is any history of damage – in other words, where a claim has been made.

If a claim has been made or rejected we can assume that there has been some damage. If the claim was accepted and repairs were carried out then you might want to commission a survey to check if the repairs are of an adequate standard. If compensation was paid instead of repairs you need to know why and what, if anything, was done in relation to the damage. Again, if claims are reported an inclusion of a free additional appendix details the individual claims in the area of the property and provides an opinion of the risk they present.

All Landmark Coal Reports benefit from eye-catching red/green summary providing instant clarity on report’s findings and are driven by Intelligent Algorithms that automatically calculate Zones of Influence to determine risk. In addition they include:

• Informative sections to explain, in an accessible manner, the nature of any risk
• Accurate reporting of risks, even in areas known by The Coal Authority to be problematic
• Technical queries are handled by industry professionals and experts
• Thorough industry knowledge of mining information, its complexities and limitations
• Includes a Professional Opinion on next steps if issues are identified

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FREE WEBINAR

How do we achieve more efficient conveyancing?

Efficient and compliant due diligence has never been more vital to a property transaction. How can we obtain and communicate the key information and risks relevant to the transaction in a faster, more concise manner?

Join us for one of two 30-45 minute sessions to discuss how we can help reduce time spent obtaining and reviewing searches, whilst providing greater risk transparency and saving your client money.

We’d be delighted answer any questions you may have. Please email your questions to intro@onesearchdirect.co.uk in advance and they will be answered during the webinar.

If you cannot make either date, and would like to receive a webinar recording, please click here.

Wednesday Aug 11, 2021 11:00 AM BST

Wednesday Aug 18, 2021 11:00 AM BST

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Key References:

https://www.gov.uk/government/publications/coal-mining-subsidence-damage-notice-form/coal-mining-subsidence-damage-a-guide-to-your-rights

https://www.nmrs.org.uk/mines-map/accidents-disasters/yorkshire/lofthouse-colliery-disaster-wakefield-1973/