House builders welcome relaxation of nutrient neutrality rules

The rules will be shaken up through an amendment to the Levelling Up and Regeneration Bill, which is currently in the House of Lords. It will remove the requirement on Natural England to advise councils not to approve housing schemes in affected areas, effectively making the rules advisory.

The government will also increase the size of a fund to offset the impact of new housebuilding on nutrient pollution.

Since May 2022, 74 planning authorities across England have paused housebuilding because of high levels of nitrates and phosphates in wetland areas, which are killing the invertebrates eaten by protected birds.

Natural England has advised these areas that any new developments must be nutrient-neutral, effectively banning new houses unless councils have offsetting schemes in place.

The rules were originally introduced under an EU directive on habitats and reinforced by a 2018 European Court of Justice ruling, but were expanded by Natural England to cover more areas in 2022.

Housing associations have previously said the rules were having a “huge impact” on the sector’s ability to deliver new homes. 

Alongside the relaxation of nutrient neutrality rules, the government said it would double investment in Natural England’s nutrient mitigation scheme to £280m, to ensure it is sufficient to offset the additional nutrient discharge of up to 100,000 homes between now and 2030.

DLUHC said the government “intends to work with the housebuilding industry to ensure that larger developers make an appropriate and fair contribution to this scheme over the coming years”, and is discussing the right structure and approach with the Home Builders Federation.

The government will then accelerate work on full site restoration through further work on new protected site strategies, which Natural England will draw up with councils in the most affected catchments with the highest housing demand. The Levelling Up Bill also includes a measure to force water companies to upgrade waste water treatment works by 2030.

Housing secretary Michael Gove said: “Protecting the environment is paramount, which is why the measures we’re announcing today will allow us to go further to protect and restore our precious waterways, while still building the much-needed homes this country needs. We will work closely with environmental agencies and councils as we deliver these changes.”   

Stewart Baseley, executive chair of the Home Builders Federation, said: “Today’s very welcome announcement has the potential to unlock housing delivery across the country, from Cornwall to the Tees Valley, where housebuilding has been blocked despite wide acknowledgement that occupants of new homes are responsible for only a tiny fraction of the wastewater finding its ways into rivers and streams.”

David Thomas, CEO of Barratt Developments, said: “We welcome the government’s commitment to tackle the disproportionate rules preventing much-needed and efficient new homes from being built, including 2,500 Barratt currently has stalled.”

Jennie Daly, CEO of Taylor Wimpey, said: “We are pleased that the government is proposing to address this important issue and is taking steps to reduce barriers to development. This will help deliver the country’s much-needed new homes, which make a significant contribution to the wider economy.”

Colin Wood, CEO of Story Homes, said the news was “monumental for housebuilding impacted by nutrient neutrality”. The plan, he said, “unlocks over 4,000 homes for our business, creating a huge boost for the local economies and supply chains, all while facilitating delivery of much-needed housing”. He continued: “Hundreds of jobs in the wider supply chain will be safeguarded as a result. The approach from the government achieves all this while delivering significant environmental measures to tackle the nutrient issue at source.”

Sam Chapman-Allen, chair of the District Councils’ Network, said: “Today’s action to tackle the unintended impact of nutrient neutrality rules on local housebuilding is excellent news for district councils. It will unblock tens of thousands of much-needed new and affordable homes for more than 40 of our member councils. It is good for local residents and good for local jobs.”