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Government, regulators and water firm reach agreement to unlock 4,000 stalled homes

An agreement has been reached between the government, regulators and a water firm to unlock 4,000 stalled homes in North Sussex.

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Homes under construction in Sussex
Building work had been halted due to concerns over water taken from rivers and wetlands in the Arun Valley (picture: Alamy)
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Under the deal by the Department for Environment, Food & Rural Affairs (DEFRA), the Environment Agency and Southern Water, the water company will change its water abstraction permits to limit the amount of water taken from local rivers and wetlands, as well as provide funding to restore habitats.

This will be paid for by the company and not by consumers, and will ensure protection for rare species like the lesser whirlpool ramshorn snail, considered a unique part of the Arun Valley’s ecosystem. 

Alongside the 4,000 homes that were previously stalled, the government believes a further 17,000 homes could also be built.


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Building work had been halted since 2021 due to concerns over the amount of water being taken from rivers and wetlands in the Arun Valley, which risked impacting protected wildlife and local water resources.

Matthew Pennycook, housing and planning minister, said: “The breakthrough achieved in Sussex North demonstrates how through smart policy interventions we can unlock precisely the kind of win-win for development and nature that this government is committed to achieving.”

In 2021, Natural England issued a water neutrality position statement in relation to the Arun Valley. As a result, new housing developments in parts of Horsham, Crawley and Chichester were paused.

Work on the homes will now begin at the start of next month, with local authorities and developers working together to deliver homes that meet high environmental standards.

The deal comes after research last month estimated that almost 30,000 new homes are currently blocked, including 7,000 affordable homes, due to supposed concerns over inadequate wastewater infrastructure.

The proposals will see the new homes built to higher water efficiency standards in line with the building regulation guidance for water scarce areas, reducing daily water use and easing pressure on local watercourses.   

Emma Reynolds, environment secretary, said: “This breakthrough ends a broken status quo and shows how we can build the homes the community needs while protecting nature.

“Under the government’s Plan for Change, we are taking a win-win approach that unlocks growth while protecting and restoring the natural world we all depend on.

“We are getting Britain building again while securing a brighter future for our precious wetlands, wildlife and local rivers.”

The breakthrough talks were led by DEFRA’s Water Delivery Taskforce, a forum for government departments, water companies, regulators and developers.  

Marian Spain, chief executive of Natural England, said: “This type of sustainable development clearly shows how we can build the new homes this country needs while restoring and protecting nature.

“A thriving natural environment is at the heart of a strong economy and is vital to all of our health and well-being. We know that people want to live near nature and cases like this where sound nature regulations prompted innovative solutions mean we can continue to make that possible.”

Under rules announced in September, house builders will be required to install water-saving features in new developments under government plans to tackle water scarcity issues that have held up housing schemes in some parts of the country.

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A block of flats under construction
Picture: Alamy
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