Shares in housebuilders fell after the government announced that "major reforms" will be made to environment regulations for the building sector that will both "boost growth and protect nature".
The Department for Environment, Food & Rural Affairs (Defra) said the Corry report reforms will "streamline and modernise" regulation to help with the government's aims of delivering 1.5 million new homes.
Economist Dan Corry, who led the review, concluded that a "bonfire" of the current patchwork of over 3,500 regulations is not the solution, instead making 29 recommendations for streamlining regulation.
Defra said it is "actively considering" nine of the proposals, including the creation of a single lead regulator, streamlined permits and a unified planning portal.
Environmental guidance and permit rules will also be overhauled to remove duplication and allow low-risk projects to proceed faster. A new infrastructure board will be created to "facilitate greater collaboration" and a new industry-funded Nature Market Accelerator will be formed with the aim of "boosting investment into natural habitats and driving growth".
The report also recommended that Defra should "quickly evaluate and improve" current schemes that link private sector funding to nature, including biodiversity net gain (BNG) and nutrients credits, "to make any early adjustments needed to maximise their delivery".
Environment Secretary Steve Reed said the changes would help with his "rewiring" of Defra and its arms-length bodies "to boost economic growth and unleash an era of building while also supporting nature to recover".
He said Corry has made a "strong set of common-sense recommendations".
Corry, who was head of Gordon Brown's policy unit and later the New Philanthropy Capital think tank, said: "we must focus on good outcomes and nature enhancement, not on rigidly preserving everything at any cost.
He added that "short-term trade-offs may be needed" but the reforms "will ultimately deliver a win-win for both nature and economic growth in the longer run".
Shares in FTSE 100 builders Persimmon PLC (LSE:PSN) and Taylor Wimpey PLC (LSE:TW.) were down 3.4% and 3.1%, while peers Berkeley Group Holdings PLC (LSE:BKG) and Barratt Redrow PLC (LSE:BTRW) were down 2.5% and 2.1%, indicating that the sector was hoping for the rejected 'bonfire' approach.
Beccy Speight, CEO of RSPB, said: "We support regulatory reforms that promote nature’s recovery and will thoroughly review Dan Corry’s proposals.
"However, any changes must prioritise nature, ensuring that protected areas are shielded from harmful development that could cause irreversible damage.
"Reassurances alone are not enough—if the UK Government wants to maintain any credibility in its claims of being serious about protecting nature, it must take decisive action now, starting by removing the threats to vital protections in the Planning & Infrastructure Bill."