Environmental Search
- When buying a property, you can get an environment search to highlight environmental risks to your property and the surrounding area.
- This comprehensive environmental report includes risks such as contaminated land or radon gas, as well as flood risk, ground stability, and energy and infrastructure.
- If the search reveals contaminated land, you will need to solve this issue before making your purchase.
- SAM's fixed, environmental search cost is £69 INC VAT and the turnaround time is 1-2 working days*.
What is an environmental search?
An environmental report is one of the most common property searches a buyer obtains during the conveyancing process (and you can see why with the number of potential defects it highlights).
The focus of the search is to highlight environmental risks which affect your property and provide detailed information on previous land use in the surrounding area (radius size varies depending on the defect reported).
What happens if the search result is a fail?
A "failed" environmental search result doesn't necessarily spell disaster, but it does need further investigation. This means that the property or surrounding land may be contaminated or pose other environmental hazards.
The reasons for a failed search can vary:
- Confirmed contamination: Past industrial activity or historical land use could have left behind lingering toxins in the soil or groundwater.
- Uncertainties: Sometimes, search companies cannot definitively assess potential risks due to limited historical data. This can lead to a "fail" while the actual risk might be minimal.
What to do next:
- Don't panic! Your conveyancing solicitor can advise you on the best course of action.
- Depending on the situation, additional targeted searches may be necessary to address specific concerns, such as asbestos surveys or ground gas investigations.
Remember, a failed search doesn't automatically disqualify the property. With proper investigation and potential mitigation measures, the issue might be resolved, allowing the search to pass.
This report analyses risks surrounding your propertySpecific to the following sections:
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Is an environmental search mandatory?
Many mortgage lenders do require you to book an environmental search. You can find out if this is a requirement by reading the Equity Mortgage Lender’s Handbook for Conveyancers.
You are liable to let your lender know of any contamination discovered on your property. You will not need to provide them with a copy of your report.
There is no requirement to buy an environmental report if you are a cash buyer, but you may give yourself considerable peace of mind by doing so.
It is worth considering that if you ever need to sell the property, the next buyer might buy an environmental report. If they find a risk factor which you did not know about, you may find your home more difficult to sell than you thought.
The importance of an environmental search
Environmental searches could reveal potential health hazards and threats to you and future occupants.
For instance, properties built on former industrial sites might harbour toxic substances buried deep beneath the surface, leading to costly fixes and possible long-term health concerns.
Beyond health risks, environmental searches also provide crucial information regarding flood vulnerability.
Properties located in flood-prone areas may face increased insurance premiums or even difficulty obtaining coverage altogether.
If the original party responsible for environmental damage cannot be identified, the landowner may bear the full cost of clean-up, potentially leading to substantial financial burdens.
- Analysis of all environmental risks.
- Report delivered within 1-2 working days*.
- Fixed fee of £69 INC VAT.
- Detailed report requested after a risk is flagged.
- Report delivered within 10-20 working days*.
- Fixed fee of £360 INC VAT.
What does an environmental search report show?
An assessment is made considering the following, with data being drawn from the Environmental Agency and the relevant local authority:
- Contaminated Land
- Past Industrial Land Uses
- Radon Gas
- Air Quality Management Area
- Air Quality Index
An environmental search report flags if the property is sat on contaminated land and gives the result ‘Passed’ or ‘Failed’ as an overall assessment. You can still buy a house situated on contaminated land.
Once this risk is flagged in a report, it will need solving. Unless exempt, the person or institution responsible for causing it is liable to fix the issue, but they cannot always be identified. As a result, the person who owns the land might be asked to do it.
The relevant local council will decide who is responsible for dealing with the contamination.
You can get Contaminated Land Insurance which could cover these costs for you. If the property has already been purchased, the search report includes a Remediation Warranty, which can cover up to £100,000 for 6 years from the date of purchase.
Another important factor is Radon Gas. It's radioactive, common in many parts of the UK, and can be found in the ground underneath buildings.
In parts of the West Country, the gas can build up to radioactive levels which are harmful to health. It can cause lung cancer, particularly in those who have smoked or continue to smoke cigarettes.
Part of the report flags whether a property is in a radon-affected area. It covers the same function as a Radon Search, which is often bought as a standalone product. If the property is within 25m of a radon-affected area, the report will flag the risk as ‘Identified’ and advise further testing.
This section considers data about the risks of flooding and is broken down further into the next sections:
- River Flooding
- Coastal Flooding
- Surface Water Flooding
- National Flood Risk Assessment
- Historic Flood Events
- Groundwater Flooding.
- JBA Floodability Rating
- Flood Storage
- Dam Break
- Sewer Flooding
If the flood findings report risks which are of concern to you, you would be well advised to buy an in-depth Flood Risk Report.
The greater detail in this report deals with matters such as whether you would be likely to get building insurance on standard terms or not. Your conveyancing solicitor can advise you further in these circumstances.
This part of the report considers man-made or natural factors that might affect the property's stability.
If this is flagged as an issue, check the seller’s property information form (TA6). These should state whether the property has been underpinned or not.
A Subsidence Report is good for flagging high-risk soil types that could cause subsidence, however, it does not confirm whether your property has subsidence.
If you are concerned about this, you should instruct a RICS surveyor to complete a Home Survey to confirm if they see any signs of subsidence affecting your property.
This is necessary because if subsidence is identified, you will need to hire a structural engineer to fix it.
Requesting the help of a professional before taking action might be more cost-effective, as underpinning can cost upwards of £40,000.
Modern energy and infrastructure developments are currently underway and while their purpose is to benefit local communities, they can significantly affect property prices.
Wind farms, for example, produce excessive noise and this may deter buyers from purchasing in affected locations.
In this section of the report, factors such as HS2, energy exploration, and solar or wind farms will be identified within the vicinity of the property.
If the report reveals something of concern to you, you can always get a detailed Energy and Infrastructure Report.
Environmental searches - the results
While worrying results might be a cause for concern, you have options to navigate the situation with your conveyancing solicitor.
If your solicitor detects red flags, they can recommend additional, targeted searches. These could include a Flood Risk Search, Coal & Tin Mining Search, and a Subsidence Report.
The search findings can serve as leverage for renegotiating your offer. For example, if the search uncovers health hazards like toxic chemicals, it poses a threat to your health and potentially reduces the property's value.
You can use this information as a basis for lowering your offer, especially if you're still determined to buy the property despite the risks.
The beauty of an environmental search lies in its timing. You receive the results before exchanging contracts, which means you're not legally bound to purchase the property.
If the findings are particularly concerning, you have the right to walk away due to the risks outweighing the potential benefits.
The Environmental Search Report analyses various categories, which depending on the location, may not apply to your property.
Similarly, factors investigated in the example environmental report might not be relevant to your property.
Environmental search cost
SAM's fixed, environmental search cost is £69 INC VAT and the turnaround time is 1-2 working days*.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
