Green quango blocks housing developments across Britain

A green quango has been accused of making Britain's housing crisis worse by blocking developments across the UK if they fail to comply with new "nutrient neutrality" rules.

Natural England, an agency responsible for protecting the landscape, has told more than 70 councils that construction projects cannot go ahead unless they are able to demonstrate that they do not pollute water systems by allowing nutrients that feed dangerous algae to run into water systems.

The rules - which are based in part of Brussels case law dating from before Brexit - have left housebuilders apoplectic and threaten to undermine a Conservative party pledge to build 300,000 new houses each year by the middle of the 2020s.

Natural England, which is sponsored by the Department for Environment, Food and Rural Affairs, admitted that its guidance will have a “significant negative impact” on housebuilding targets.

One senior housebuilding figure said that Michael Gove and the housing department appeared to have been “blindsided” by the rules.

They said the restrictions, which will be applied to 74 local authorities, would "wreak havoc" on the Conservative manifesto pledge.

The executive said: “That target of 300,000 is going to be hugely underwater. All housebuilders are struggling.”

The crisis has attracted the attention of one of the most influential Conservative politicians outside of Westminster.

Speaking at a conference organised by the Centre for Policy Studies, Ben Houchen, mayor of  the Tees Valley combined authority, said: “Natural England literally three weeks ago without any consultation just decided to slap on nutrient neutrality as a requirement for any approval of housing, which now means that all five local authority areas that cover my area plus some of Durham plus some in North Yorkshire have now said that they're not approving any housing plans at all.

“[They] probably won’t do for the next two years unless they get some real clarity from the government that they are allowed to and it affects anything where there is an overnight stay, so it's housing but it's also bed and breakfasts [and] hotels.”

When the new advice was released last month, Melanie Hughes, director of sustainable development at Natural England, said that nutrient pollution is “a major environmental issue for many of England’s most important places for nature”.

She added: “In freshwater habitats and estuaries, increased levels of nutrients, especially nitrogen and phosphorus, can speed up the growth of certain plants, disrupting natural processes and impacting wildlife.”

Housebuilders attacked water companies for failing to invest in sewage systems and infrastructure to ensure that pollution does not leach into rivers.

The Home Builders Federation estimates that housebuilders have handed water firms £3.5bn in recent years - money that was supposed to be used to improve infrastructure.

One housebuilding source said: “It is stopping housebuilding for the sins of others. Principally the water companies who haven’t invested appropriately in sewage treatment… Where the hell has all that money gone?”

“Local planning authorities are working out how to respond to this. They don’t know themselves. It came out of a clear blue sky to them as well. And there’s no real guidance. What it is threatening is future planning permissions.”

“Local authorities are saying they can’t allow new planning permissions because it has to be neutral in its overall effect on the watercourses within the area. A number of authorities at the moment are interpreting it as: 'We can't allow permissions whilst we work out what to do'."

James Stevens, Director for Cities at the Home Builders Federation said: “Avoiding harm to water habitats caused by nutrients is important, and the housebuilding industry is prepared to play its part in a way that is fair and reasonable. However, we face an acute housing shortage and the social and economic implications of delaying tens of thousands of homes are stark.

“We are urging Government to agree proportionate measures that reflect the contribution of housing delivery to the issue without delay. The situation has already been ongoing for some years and it is imperative that solutions are agreed and implemented urgently.”

A Government spokesman said: “We want to protect the environment and deal with the build-up of nutrient pollution whilst building the homes this country needs.

“While house building is not the primary cause of nutrient build-up, we want to introduce measures quickly to allow development to move forward.”