The research by the House Builders Federation (HBF) and the Land Promoters and Developers Federation (LPDF), said that changes in the planning framework, nutrient neutrality, water neturality and Recreational Impact Zones would all have a negative impact on the number of new houses bale to built and aggravate the housing crisis in the UK.
The research said that changes to the national planning policy framework, especially those around plan making and housing land supply, could lead to a 77,000 drop in housing supply per year.
It noted that although still subject to consultation many local authorities were adopting reforms, with 47 pausing local plan making processes, which could further stymy housebuilding.
The report added that around 120,000 homes were currently on hold due to Natural England’s moratorium on housebuilding in around 74 local authorities due to nutrient neutrality.
Nutrient neutrality is when new residential developments can only occur if the nutrient load, such as additional phosphates and nitrates, created through additional wastewater from a development is mitigated.
The report continued that based on the current approach that these local authorities deliver on average 51,000 homes every year and development could drop by 80 per cent, the current approach could lead to an average of 41,000 homes not being built each year.
The HBF noted that Defra acknowledged that the majority of nitrate and phosphate pollution of waterways was caused by agricultural practices and wastewater treatment facilities not being upgraded, but Natural England had “acted exclusively against home building”.
In the Spring Budget, the government had opened a call for evidence for local planning authorities on nutrient neutrality and acknowledged it was a major barrier to its housebuilding target.
Water neutrality and Recreational Impact Zones negatively impact housebuilding
The report added that water neutrality, also overseen by Natural England and mandates that new developments can not increase the rate of water abstraction from drinking water supplies above existing levels, was holding up around 3,000 homes in the planning system at the moment.
The report estimated that water neutrality restrictions could see a further drop of up to 1,900 homes per year.
It said that Recreational Impact Zones, which limits development around national parks and other ecological areas, could reduce housing supply by around 21,000 homes per year.
The report added that Natural England was consulting on plans to impose restrictions on development where new developments could lead to the generation of more air pollution near “beauty spots”, which could also have a negative impact.
Stewart Baseley, executive chairman of HBF, said: “Ministers’ decision to cave into the NIMBY lobby and the anti-development actions of its quango, Natural England, represent another blow to our efforts to tackle the housing crisis.
“The health of our rivers is being threatened by agricultural practices and the shocking failure of water companies but the government’s response is to block housebuilding. Four years into this fiasco, these bans on growth are having stark social and economic impacts and threaten to widen the ever-growing intergenerational divide while costing hundreds of thousands of jobs.”
The report said that the drop in housing could lead to 370,000 fewer jobs being supported, including 4,000 graduate and apprenticeship positions.
It could also mean over £20bn less economic activity being generated and £3bn less investment in affordable housing.
