With the UK facing increasingly unpredictable weather, there is an urgent need for the property sector to adapt. Climate risk is no longer a distant threat – it’s a present-day reality increasingly affecting real estate.
The impact is not just being felt through flooding, rising sea levels, overheating homes or subsidence, but through transition risks that can impact a property’s value and marketability. There is a growing need for more accurate, property-specific pricing rather than relying on broad, postcode-level assessments that don’t take into account variations in building type, age and vulnerability.
Climate change and the built environment
The UK’s housing stock – much of it built for colder climates – is struggling to cope with rising temperatures. Around 20% of homes are already at risk of overheating, particularly older buildings with poor insulation and limited ventilation.
Urban heat islands, where cities like London can be up to 5°C hotter than surrounding areas, intensify the problem – especially for older homes with solid walls and poor airflow or flats with limited ventilation.
Datasets added to the OS National Geographic Database (NGD) and the tools developed by our partners help stakeholders across the entire property lifecycle understand the risk of exposure and consider mitigation strategies, such as HeatView from Map Impact (pictured), which provides a score indicating a property’s susceptibility to heat stress during a heatwave. Environmental search platform Martello also uses OS data to extract features such as contaminated land and mining shafts, which can then be referred to environmental risk specialists to verify technical documents or conduct bespoke assessments.
Dr Henry Crosby, co-founder & CEO of Martello, explains:
“By combining geospatial intelligence with expert human analysis, we help conveyancers cut through complexity and give homebuyers a reliable picture of climate and environmental risks. Homebuyers can then make informed decisions about the property they are purchasing, and lenders are able to approve mortgage applications with trusted and accurate data.”
Dr Iris Kramer is founder of ArchAI, which applies AI technology to historical maps and environmental data to identify areas at risk of subsidence and environmental hazards such as filled-in ponds, railway cuttings and industrial sites. As climate change drives more frequent droughts and heavy rainfall, these areas can experience ground shrinkage and unstable soil conditions, increasing the risk of structural damage. Accurately mapping such features is essential for long-term climate resilience in land development and infrastructure planning.
‘A lot is hidden in the landscape – we want to help increase the understanding of the potential risks out there’, Kramer says.
“By combining historic mapping with geospatial intelligence, we can identify areas where subsidence, sinkholes or contamination may occur. This is especially important in regions with a legacy of mining, rail infrastructure, or industrial activity. Our goal is to make these invisible risks visible, so that developers, insurers, and homeowners can make informed decisions.”
The growing concern of climate damage
Lenders are increasingly factoring climate risk into property valuation and due diligence.This process is evolving to incorporate property specific insights, including Unique Property Reference Numbers (UPRNs), building condition and construction type.
‘Banks use climate data and catastrophe models to assess how climate risks might affect the overall value and performance of their real estate portfolios over time’, explains Juliet Ezechie, head of commercial at OS.
“Models historically used by insurers to hedge risk were not designed to predict uncertain events. OS provides accurate and trusted data to mitigate risk and offer a clearer picture of the landscape. With up-to-date insights – not just historical data – financial institutions can make better informed decisions, strengthen their resilience, and manage long-term exposure more effectively.”
This shift has direct implications for consumers and lenders: it prevents properties from being undervalued, reduces exposure to mispriced risk, and safeguards reputation and financial stability.
OS data enhances climate risk analysis by moving beyond postcode-level assessments to offer an understanding of the resilience or vulnerability of individual properties. The value of location data goes beyond spreadsheets and numbers—it helps answer the ‘where’ questions to ensure the conveyancing sector and consumers are better informed about the risks they face.
With enhanced location data and improved risk analysis, the conveyancing industry will be better equipped for the changing environment, while aligning with the Law Society’s climate change practice note.
