By Ben Lucas
Housebuilders’ shares rose today on the news that Michael Gove is set to scrap water pollution rules linked to new developments in a bid to ease the country’s housing crisis.
Barratt Developments and Taylor Wimpey gained 2.9 per cent and 2.6 per cent respectively, while Persimmon was the second biggest riser on the blue-chip index this morning, up by 3.4 per cent.
It was reported today that the housing secretary will announce plans to scrap so-called nutrient neutrality legislation, which were implemented when the UK was a member of the EU.
The decision will please major developers who have long-complained that the rules have restricted where they can build new homes.
However, the move is likely to upset environmental groups who believe the rules are essential for protecting the country’s rivers.
The nutrient neutrality rules protect dozens of areas across England, stopping local authorities from giving the green light to any new development that may harm rivers through added nutrients from wastewater from new homes or run-off from building sites.
The legislation was introduced in 2017 when the UK was still a part of the EU, in an attempt to prevent damaging accumulations of algae and other plants, which can destroy aquatic life.
But housebuilders have argued argued that this was both costly and time. They said the rules were so strict that they cannot build new homes in large parts of England, which is currently suffering a housing shortfall which is forecast to drop below levels not seen since WWII.
In a bid to appease environmental groups, Gove is also reportedly planning to announce additional measures to reduce water pollution in other ways, including £400m in grants to farmers and water companies to improve slurry infrastructure and make leaks into the UK’s waterways less likely.
Matthew Lesh, director of public policy and communications at the free market Institute of Economic Affairs, has praised the news, citing it as a “crucial step” step in addressing the housing crisis.
“These rules held back tens of thousands of homes for little environmental benefit. The key culprit in river pollution is intensive farming, housing and sewage make a relatively small contribution,” he added.
“These rules mean one fewer reason that local councils must reject housebuilding. But there are countless fiddly rules and processes holding back much-needed homes and infrastructure. A government serious about economic growth must go much further and much faster to unshackle the British people.”
However, Doug Parr, policy director at Greenpeace UK, told the Guardian that scrapping or weakening limits on chemicals from sewage and farm run-offs would “be a sure sign that ministers have completely given up on saving our great waterways and the precious wildlife they host”.
