Natural England steps up efforts to lift housebuilding ban as developers continue to struggle

One credit (to mitigate one kilogram of nitrogen) costs £1,825. Developers have until 30 April to apply for the first round of the scheme, with the second round opening on 3 July.

However, other affected catchment areas, including large parts of Norfolk and Yorkshire, are yet to receive their own mitigation schemes.

On Wednesday the government opened a consultation on the impact of nutrient neutrality guidance on development. Affected planning authorities have until 24 May to provide evidence and express their interest for nutrient mitigation schemes.

The government has offered £100,000 to fund catchment officers to help authorities establish mitigation schemes, and the Levelling-up and Regeneration Bill passing through parliament includes laws to force water companies to upgrade wastewater treatment works in affected areas.

The Nitrates and Phosphates Strategy Group, a pressure group of developers in areas affected by the rules, claims that the guidance is blocking the development of 114,800 new homes, including tens of thousands of affordable homes.

Chris Winter, chair of the group and managing director of Cherwyn Developments, told Inside Housing that Tees Valley is “the flavour of the month” for government but in Somerset, where he is based, “every site is still causing us problems”.

Mr Winter said that Natural England is looking into the situation but that “there’s very little communication”, while affected developers are delivering “very few homes and absolutely no affordable homes”.

The levelling-up bill’s attempts to make water companies play their part would not bear fruit until 2025, he said, adding that SME developers are “still struggling, because we can’t move and operate anywhere else.”

Marian Spain, chief executive of Natural England, said: “Our wetlands and estuaries… are being seriously damaged by pollution.

“If we are to see nature recovery in action, we must first protect these internationally renowned places. Our new mitigation scheme will help improve our natural environment and allow the houses we need to be built.”