Purchasing property with a private water supply: key legal considerations

A private water supply is one that is not provided by a statutory water undertaker. While the majority of properties in England are connected to mains water, private supplies remain relatively common in rural areas. These supplies are typically sourced from wells, boreholes, springs or watercourses and may serve a single property or multiple properties via a shared network.

Where a property relies on a private water supply, purchasers should be alert to a range of additional legal, regulatory and practical considerations which do not arise with mains-connected properties.

Regulatory position

In England, private water supplies are regulated under the Private Water Supplies (England) Regulations 2016, as amended in 2018 (the Regulations). Separate, and slightly different, regulations apply in Wales.

The Regulations place obligations on local authorities to monitor the wholesomeness and adequacy of private water supplies and grant them enforcement powers where standards are not met. Enforcement action may be taken against 'relevant persons', a broadly defined category which can include, owners or occupiers of premises served by the supply and/or of premises on which any part of the supply infrastructure is situated and any person responsible for the management or control of the supply.

Where a supply is, or is suspected to be, unwholesome, the local authority is required to investigate, notify those affected and provide appropriate advice. If there is a risk to human health, the authority may serve a formal notice requiring remedial steps to be taken to restore water quality.

Matters for buyers to consider

Properties served by private water supplies can present challenges that do not typically arise with mains water, including variable water quality and potentially higher, and less predictable, maintenance costs. As part of their due diligence, buyers should carefully consider the following issues:

Source of supply and legal rights. Where the water supply crosses third party land, there should be a legally enforceable easement securing the ongoing right to take water, together with rights of access for inspection, repair and replacement. Buyers should also check whether there are contractual arrangements governing maintenance responsibilities, management of the supply and contributions towards running costs.

Abstraction licensing. If the supply involves the abstraction of more than 20 cubic metres of water per day, an abstraction licence may be required. The existence, validity and transferability of any such licence should be verified prior to exchange of contracts.

Water quality and testing. Private water supplies are subject to regular testing. As a general guide, testing is recommended at least every five years. Private supplies can be particularly vulnerable to contamination from surface water runoff, agricultural activity, animal waste, ageing pipework and bacterial growth, all of which should be carefully assessed.

Mortgage considerations. Securing mortgage finance can be more complex where a property is served by a private water supply. Lenders may impose additional requirements relating to the private water supply.

Responsibility and liability. The property owner is typically regarded as a “relevant person” and is therefore responsible for ensuring that the supply is safe and poses no risk to human health. Owners may face potential liability if illness or harm is caused by the water supply.

Given the additional risks and complexities involved, we strongly recommend that purchasers of properties with private water supplies instruct solicitors experienced in rural property transactions. Appropriate due diligence and carefully targeted enquiries can help identify potential issues at an early stage and ensure that the risks are properly understood before committing to a purchase.

If you would like further advice on any of the above, please do not hesitate to contact us.