Climate change is no longer a ‘next generation’ threat; it’s on our doorstep impacting many different aspects of our lives, not least within the property sector.
Buildings are a major contributor to greenhouse gas emissions, and the effects of climate change are posing considerable risks to property values and future habitability. It is now undeniable that our sector needs to adapt.
“The property sector is a big part of the problem, as today, 40% of greenhouse gas emissions come from our buildings. If left unchecked, this is set to double by 2050.”
– Chris Loaring, Group Sustainability Director, Landmark Information Group
To understand how the property industry is starting to adapt, Landmark conducted comprehensive market research of 150 senior level employees working in estate agency, residential conveyancing, and mortgage lending across England, Scotland and Wales. Our findings have helped us gauge the growing commitment towards sustainability, and how we can help support and nurture this further.
The consensus from the industry
Our report, “Climate change in the property sector: a cross-market perspective,” takes a thorough dive into the findings:
Growing concern
Climate change is no longer a distant threat. A significant majority of property professionals (72%) recognise the urgent need to address its impacts. This growing awareness is driving a shift towards sustainable practices within the industry.
Client awareness
Property professionals said that clients are increasingly concerned about the potential effects of climate change on their property purchases. Flooding (60%), energy efficiency (58%), and local planning (56%) are among the top priorities for homebuyers. As climate risks become more apparent, these concerns are influencing decision-making processes.
Shifting practices
The property industry is adapting to the changing climate, and more professionals are actively advising clients. For example, mortgage lenders are, on average, advising 48% of their clients on potential climate change risks to their property, a similar number can also be seen from estate agents (49%).
Room for improvement
While the industry is making progress, there is still room for improvement. Less than 60% of conveyancing firms are currently on track to meet carbon emission targets. This highlights the need for continued efforts to reduce the industry’s environmental impact.
Encouragingly, more businesses have created net zero strategies (76%, up from 52% in 2023). Conveyancers have made significant progress, with 48% having published their own strategies. This is a demonstrable sign at just how much positive momentum towards solutions the industry is taking when it comes to the fight against climate change.
Download our report
To gain a deeper understanding of the trends and insights from our research, download your copy of ‘Climate change in the property sector: a cross-market perspective‘ here:
*World Green Building Council report: Embodied Carbon – World Green Building Council (worldgbc.org)
Returning to the pavilion for a second year, OneSearch hosted a corporate hospitality day at St James Street in Taunton. Quickly gaining a reputation as the South-West’s next big event after Glastonbury and Cooper’s Hill Cheese Rolling, the event was a resounding success as guests witnessed Somerset CCC claim a decisive victory!
James Shepherd, Regional Sales Manager for OneSearch, posted: “There aren’t many better ways to sign off a week then hosting a fabulous bunch of property lawyers in the OneSearch box raising a glass to Somerset County Cricket Club cruising to a comfortable win over Lancashire! An absolutely brilliant day. Same time next year 🍷🍷🏏🏏”
The potential dangers of contaminated land do not stand out to prospective purchasers when the door opens on the property of their dreams, spruced up and dressed for sale.
However, neglecting to investigate potential contamination on a property could spell trouble for buyers and the environment. Failing to conduct due diligence might mean hefty clean-up costs, health risks and legal issues for the new owners down the line. The spread of contaminants could harm not just the property but also the homes of neighbours and the local community.
It is the conveyancer’s responsibility to ensure home movers are fully aware of and safeguarded against the financial and environmental hazards associated with contaminated land.
The importance of due diligence
Bypassing environmental assessments to speed property transactions and reduce costs is both a false economy and dangerous. The Law Society notes:
“…you should consider in all conveyancing transactions whether land contamination is an issue.”
The only way to identify contaminated land issues is with an environmental search.
Should the environmental search expose contaminated land, the Environmental Protection Act applies the polluter pays principle, which aims to charge the original contaminator, but that is not always possible. There is strict liability on property owners for remediation costs, regardless of when the contamination occurred – even if the owner takes on the property decades after the contamination happened and the original contaminator cannot be found. Failing to disclose known contamination issues can also expose sellers and conveyancers to legal action for misrepresentation.
There are instances in which the costs for dealing with the contamination have exceeded a property’s market value, and that has plunged new private owners into negative equity and turn a dream forever home into a millstone. The importance of technical and legal due diligence regarding contaminated land cannot be understated. Where an environment search throws up a ‘Further Action’ on a property, it is on the conveyancer to dig deeper, to act further.
Article originally published by Landmark Information Group
The latest data from Landmark reveals that listing volumes are averaging 6% higher than in Q2 2019 which we use as the benchmark year, indicating that supply is the strongest it has been in years.
However, transactions are struggling to progress to completions, reflecting ongoing affordability issues driven by high interest rates and the uncertainty of a General Election. Sold Subject to Contract (SSTC) levels are down 32% compared to Q2 2019. Similarly, completion rates, despite showing moderate growth in May, remain around 40% below where we’d expect in normal market conditions.
Despite these challenges, the data suggests that the market is poised for a potential upturn in the latter half of 2024, provided economic stability improves and systemic inefficiencies are addressed by the new Government, alongside the wider industry.
Notable headlines in England, Wales and Scotland from Q2 2024 include:
- In England and Wales, listing volumes were up 6% in Q2 ‘24 vs Q2 ‘19. In Scotland, there was a slight decline in listing levels versus Q2 ‘19 with volumes down 4%.
- In England and Wales, SSTC volumes in Q2 ‘24 continued at Q1 levels – 32% lower when compared to Q2 ‘19 volumes. In Scotland, SSTM continued to slow, down 16% in Q2 ‘24 vs Q2 ‘19.
- In England and Wales, completion levels in Q2 ‘24 remained the same as Q1 ‘24 – 41% down vs Q2 ‘19 volumes. In Scotland, completion volumes were down 5% in Q2 ‘24 vs Q2 ‘19.
Download the report to discover the latest trends impacting the residential sector in Q2 2024.
UK conveyancing firms and law firms are under ever greater scrutiny to carry out rigorous Anti-Money Laundering (AML) checks, and for good reason. According to Europol, 70% of criminal enterprises now use money laundering techniques to hide their ‘ill-gotten’ gains.
In response, the SRA has massively ‘upped the ante’ in the past 12 months, ramping up desk-based AML compliance assessments, resulting in record fines in 2024. So, the question is, what can you do to ease this burden on your business while ensuring consistent AML compliance when dealing with international clients?
Enhanced AML checks for international clients
One of the main challenges for conveyancers in 2024 is knowing exactly when to carry out enhanced AML checks for international clients and how to do so effectively and efficiently.
Remember, you must complete EDD AML checks when dealing with a customer who is not physically present when carrying out ID checks (e.g. international clients), a ‘Politically Exposed Person’ (PEP) from a high-risk third country identified by the EU, or presents a higher risk of money laundering.
What are the challenges of vetting international clients?
Carrying out AML checks on international clients to the standard required by the SRA and CLC can be especially challenging, because:
- Your staff may never meet the client in person
- There may be language barriers
- Domestic checking processes, services and software may not work for clients in other countries, and
- It can be difficult to establish the Ultimate Business Owner (UBO), the Source of Funds (SOF) or if the person is a PEP or on a sanction list in another country.
Due to these challenges, there is a high risk of wrongly identifying or failing to recognise an individual as a high AML risk.
How can I ease the burden of international AML checks?
Using systems and processes designed for a domestic clientele to deal with international clients is a risk to your business. Easing the burden of international AML checks requires ‘fit for purpose’ systems, processes, and training geared specifically to international clients.
While your staff may be familiar with how to spot AML ‘red flags’ for domestic clients, they must also be trained on how to do this for international clients. Likewise, you must have AML conveyancing processes and workflows for onboarding and the ongoing monitoring of international clients. Remember that not all third-party AML services and software are capable of handling international client AML checks.
Implementing an automated workflow AML solution that can handle both domestic and international clients is key to reducing the administrative burden and AML risk for your business.
Introducing OneSearch AML for International clients
OneSearch International AML with Facial Recognition is a new, easy-to-use technology solution for conveyancers with overseas clients which will easily integrate into your existing systems. OneSearch International AML with Facial Recognition provides:
- A combined digital ID verification and real-time facial recognition capable of dealing with clients in other jurisdictions
- International PEP and sanction screening using real-time information from over 350 datasets, including domestic and international government websites and public transparency projects.
- Adverse media screening
- Law enforcement and Special Interest Person (SIP) screening for international clients and
- Headshots for PEPs sourced from official international government websites to reduce false positives during the PEP screening process.
Final words
Without fit-for-purpose training, processes, and systems to deal with international clients, it is all too easy to miss money laundering red flags and risks, which can lead to fines and serious reputational harm. With OneSearch International AML, you can relax knowing that your firm is meeting its AML regulatory requirements, and any AML risks will be picked up early or at any point throughout the transaction.
We are delighted to welcome Claire Slade to the OneSearch team as Business Development Manager.
Claire brings over 20 years of experience in the business development field, having cultivated strong relationships and driven significant revenue growth throughout her career. For the past three years, Claire served as a Business Development Manager at OnTheMarket. Prior to that, she held positions at Yell, Mercedes Benz Finance, and Pendragon.
In her new role at OneSearch, Claire will be responsible for executing strategic initiatives to ensure conveyancing professionals and property data providers can obtain all the property information they need in one place, as well as providing them with the tools they need to complete transactions faster and with greater ease.
“I am thrilled to be joining OneSearch at such an exciting time for the company,” said Claire. “OneSearch’s reputation is unparalleled in the industry, and I am confident that I can play a key role in helping businesses leverage this data to achieve their goals. I am looking forward to working with the talented team at OneSearch and building strong partnerships with our clients.”
Elizabeth Jarvis, Managing Director at OneSearch, added:
“We are delighted to welcome Claire to the OneSearch team. Her extensive experience and proven success in business development make her a valuable asset. Claire’s expertise will be instrumental in driving our growth strategy and expanding our reach within the search and property data market.”