Nutrient neutrality changes: What you need to know

With the government seeking to relax “defective” rules around nutrient neutrality, we look at what the changes will mean for the housing sector and the delivery of new homes.

Earlier this week, housing secretary Michael Gove announced the government’s plan to scrap “defective EU laws” around nutrient neutrality in order to boost the supply of new-build homes. 

According to Gove, the changes will enable an extra 100,000 new homes to be built by 2030 and provide an £18bn boost to the UK economy. 

Announcing the move, he said: “We are committed to building the homes this country needs and to enhancing our environment - the way EU rules have been applied has held us back.” 

Before we look at what these new rules mean for housebuilders, and when they might come into effect, let’s look at what nutrient neutrality actually is.

What is nutrient neutrality? 

Nutrient neutrality is a concept in environmental planning that aims to ensure new developments do not increase the amount of pollutant nutrients entering waterways. 

In the UK, nutrient neutrality is a requirement for new development in areas that are designated as "nutrient neutrality areas”, typically those that are already experiencing nutrient pollution problems. 

The concept was first introduced in the UK in 2019, following an EU court ruling on the matter in 2018. 

The changes 

Currently, local authorities are unable to approve plans for new homes in areas where Natural England – a non-departmental body sponsored by the Department for Environment, Food and Rural Affairs – has advised them that protected habitats are in poor condition. To date, Natural England has issued this advice to 74 local planning authorities. 

The proposed amendment to the Levelling Up and Regeneration Bill seeks to remove nutrient neutrality considerations in new housing planning applications. Effectively, Natural England will no longer be required to advise councils on rejecting planning applications for new housing developments in areas where protected waterways are at risk from nutrient pollution. 

Aside from cutting the “red tape” around nutrient neutrality, the government also confirmed it will double the size of Natural England’s Nutrient Migration Fund to £280m. 

In addition, it plans to introduce further measures to reduce agricultural nutrient pollution by providing £200m in grants to farmers and mandating more frequent farm inspections. 

Reception 

Housebuilders have voiced their support of the changes, with the likes of Taylor Wimpey agreeing with the government that the new legislation will increase housing delivery and boost the economy. 

In a statement, Taylor Wimpey CEO Jennie Daly said: “We are pleased that the government is proposing to address this important issue and is taking steps to reduce barriers to development. 

“This will help deliver the country’s much needed new homes, which make a significant contribution to the wider economy.” 

The Home Builders Federation - which claims the amendments could unblock a pipeline of around 150,000 homes - were equally welcoming of the changes. 

The body’s executive chair, Stewart Baseley, said: “The industry is eager to play its part in delivering mitigation and protecting our waterways. 

“We look forward to engaging with government on the right way to do so, now that ministers are acting upon the arguments that builders both large and small have been making for so long.” 

However, there are many who have spoken out against the plans, with environmental groups in particular airing their frustrations. 

Craig Bennett, the CEO of The Wildlife Trusts said: “This is a disgraceful move which undermines public trust in this government. 

“Make no mistake – this is a license from the government for the commercial housebuilding lobby to profit from the pollution of our rivers.” 

While the National Housing Federation (NHF) said the changes were welcome, it expressed concern around pollution. 

In a statement on X, the NHF said: “We welcome this intervention which will unblock 1000s of much needed #AffordableHomes which are currently stuck in planning. 

“However, the government must do more to tackle the issues around nitrate pollution.” 

While Labour made a point of criticising the government’s housing and environmental track record, the party said it will back the proposed changes in order to support the delivery of new housing. 

Shadow housing secretary Lisa Nandy said: “Labour will support effective measures that get Britain building.” 

Next steps 

The government hopes that these changes will help it to deliver on its manifesto commitment of building one million homes over the course of this parliament. It also hopes that by relaxing nutrient neutrality rules, it will be able to make good on its promise of building 300,000 new homes per year by 2025 - which it has so far been unable to do. 

However, it is not clear when these changes might take effect, as the ever-expanding Levelling-Up and Regeneration Bill is currently stymied by debate in the House of Lords. 

If the remainder of the Levelling Up and Regeneration Bill’s journey is smooth, though, the new legislation could come into effect in early 2024.