Environmental issues in transactions

Copyright © 2025 LexisNexis

Environmental issues affect freehold and leasehold interests.

Environmental risk

Legal advice in property transactions requires identifying environmental risk which encompasses a broad range of environmental issues both natural and human induced such as:

  1. •

    land contamination

  2. •

    air pollution

  3. •

    water pollution

  4. •

    flooding

  5. •

    asbestos

  6. •

    exposure to hazardous substances

  7. •

    subsidence and sinkholes

In a property context, environmental issues can arise from:

  1. •

    historic use of the site (eg previous industrial uses)

  2. •

    historic and/or current use of nearby properties (eg potential leaching of contaminants from other sites)

  3. •

    the current or proposed use of the site (eg a potentially contaminating use or a use requiring specific permits/licences)

  4. •

    regulatory requirements (eg Energy Performance Certificates, Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, Energy Savings Opportunity Scheme (ESOS), building regulations)

Legal advice in relation to property transactions requires a commercial assessment of the target's actual or contingent environmental risks and liabilities, including:

  1. •

    potential impact on the value of assets (eg remediation or other clean-up costs)

  2. •

    operational risks (eg transfer, suspension or revocation of an environmental permit or other necessary licence)

  3. •

    reputational risks (eg pollution incidents or perception

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property News

Built environment industry responses to the Spring Statement 2025

Following the publication of the Spring Statement on 26 March 2025, several built environment industry bodies have released their responses.

HMT announces taskforce to accelerate housing development on public defence land

HM Treasury (HMT) has announced a new taskforce to accelerate the construction of homes on surplus public defence land across England. The taskforce will explore new delivery models and foster collaboration among government bodies, including the Ministry of Defence and Homes England, to identify, develop, and release unused public land for housing development. Additionally, a new property company, formed by Network Rail and London & Continental Railways, is set to become operational in late 2025. The company aims to attract public and private investment to develop brownfield sites, with the potential to deliver up to 40,000 homes over the next decade. The first development sites will be in Newcastle, Cambridge, Manchester, and Nottingham.

Property weekly highlights—27 March 2025

This week's edition of Property weekly highlights includes: the Spring Statement 2025, a case clarifying the statutory test for a ‘self-contained part of building’ in right to manage claims, a High Court decision concerning the grant of a freezing injunction prohibiting disposal or diminution of certain assets, the government’s response to the consultation on the Building Safety Levy, an increase in the Flood Re levy and the latest HM Land Registry guidance updates.

Welsh Government launches consultation on building control reforms for high-risk buildings

The Welsh Government has launched a consultation seeking views on proposed changes to building regulations and the introduction of a new building control regime for higher-risk buildings in Wales. The consultation, which opened on 26 March 2025, invites responses from stakeholders on two key areas: the proposed new building control regime for higher-risk buildings and wider changes to the building regulations in Wales. Responses can be submitted via the online form, email (enquiries.brconstruction@gov.wales) or post until 25 May 2025.

View Property by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Where a property is let, who is the dutyholder in respect of asbestos at the property as between

Where a property is let, who is the dutyholder in respect of asbestos at the property as between landlord, tenant and any subtenant? Can the duty be assigned to another party? Does the landlord have an overarching liability?Regulation 4 of the Control of Asbestos Regulations 2012, SI 2012/632 (CAR

How do MEES regulations affect farmhouses which are already let under old-style Agricultural Holdings Act

How do MEES regulations affect farmhouses which are already let under old-style Agricultural Holdings Act 1986 tenancies? Are farmhouses regarded as residential properties for the purposes of these regulations or are they mixed properties?What do the MEES regulations provide?The Energy Efficiency

Minimum energy efficiency standards (MEES) in the private rented sector—snapshot

Minimum energy efficiency standards (MEES) in the private rented sector—snapshotThis Practice Note provides an overview of the minimum energy efficiency standards (MEES) for the private rented sector that have come from the Energy Efficiency (Private Rented Property) (England and Wales) Regulations

Is an Energy Performance Certificate defective/invalid if it refers to the correct address but an

Is an Energy Performance Certificate defective/invalid if it refers to the correct address but an incorrect postcode in the property description?An Energy Performance Certificate (EPC) is a requirement in respect of properties marketed for sale and/or letting and, from 1 April 2018, any property let
Where a property is let, who is the dutyholder in respect of asbestos at the property as between

Where a property is let, who is the dutyholder in respect of asbestos at the property as between

Where a property is let, who is the dutyholder in respect of asbestos at the property as between landlord, tenant and any subtenant? Can the duty be assigned to another party? Does the landlord have an overarching liability?Regulation 4 of the Control of Asbestos Regulations 2012, SI 2012/632 (CAR

How do MEES regulations affect farmhouses which are already let under old-style Agricultural Holdings Act

How do MEES regulations affect farmhouses which are already let under old-style Agricultural Holdings Act

How do MEES regulations affect farmhouses which are already let under old-style Agricultural Holdings Act 1986 tenancies? Are farmhouses regarded as residential properties for the purposes of these regulations or are they mixed properties?What do the MEES regulations provide?The Energy Efficiency

Minimum energy efficiency standards (MEES) in the private rented sector—snapshot

Minimum energy efficiency standards (MEES) in the private rented sector—snapshot

Minimum energy efficiency standards (MEES) in the private rented sector—snapshotThis Practice Note provides an overview of the minimum energy efficiency standards (MEES) for the private rented sector that have come from the Energy Efficiency (Private Rented Property) (England and Wales) Regulations

Is an Energy Performance Certificate defective/invalid if it refers to the correct address but an

Is an Energy Performance Certificate defective/invalid if it refers to the correct address but an

Is an Energy Performance Certificate defective/invalid if it refers to the correct address but an incorrect postcode in the property description?An Energy Performance Certificate (EPC) is a requirement in respect of properties marketed for sale and/or letting and, from 1 April 2018, any property let