Tougher rules on phosphate river pollution could see thousands of new house builds delayed or scrapped at an economic cost of £16bn, according to the Home Builders Federation (HBF).
HBF estimates, calculated from an industry-standard model, suggest that over 100,000 new builds in England and Wales are covered by the targets, which are designed to protect wildlife.
In Wales, more than 5,000 housing developments will be affected, potentially costing the local economy £700mln, while in England 100,000 new builds in 74 areas face disruption.
Government policy, implemented in March 2022, set new targets to reduce phosphate pollution, which leads to algae blooms that can kill river-dependant species, requiring developers to avoid adding nutrients into local environments at protected sites.
“We recognise that delivering ‘nutrient neutrality’ under the Habitats Regulations may impose additional costs on development,” wrote the government in the policy paper.
“The government is clear that this can only be an interim solution. We must act to address the sources of pollution and tighten up the associated regulatory frameworks to prevent further harm to protected sites.”
Some housing developers feel they are being unfairly targeted, however, with Stewart Basely, chair of the HBF, saying: “We have government agency-imposed moratoriums on house building across large swathes of the country for nutrient neutrality, despite house building being a minor contributor to the issue.”
Meanwhile, environmental groups warned of ecosystem collapse and worsening climate issues if habitats were not protected, with ‘nutrient credit’ schemes increasingly being used to offset the rules and allow pollution.