The Home Builders Federation (HBF)has released a new report titled ‘A Drain on the Nation’, examining the country’s infrastructure and its effect on home building
According to the research, current inconsistencies in UK wastewater policy are delaying the construction of 30,000 new homes.
This includes 7,000 affordable homes, as wastewater infrastructure in certain areas is too lacking to support them.
High fees for developers, regardless
The report also highlights that housing developers have paid nearly £2.3bn in contributions to water companies to upgrade this infrastructure.
Still, delays are common, with some issues being raised over sewerage capacity, even when the water companies themselves have said there would be no issue.
This is due to UK wastewater policy and planning policy, which puts responsibility for wastewater infrastructure with water and sewerage undertakers and not the planning applicants.
Updates to the National Planning Policy Framework (NPPF) also say that local planning authorities (LPAs) should assume that infrastructure providers will meet legal obligations.
It would appear that several LPAs are not confident in this, however, still refuse planning permission due to concerns over sewerage.
It is due to this discordant matching of policies that thousands of homes are being delayed, say the HBF, which further damages community investment.
30,000 new homes being delayed is also delaying an estimated £900m in Section 106 contributions, which could fund local infrastructure, schools, green spaces, and public areas.
Policies are changing, but more change is needed
The HBF give commendation to Ofwat for their effort to take more responsibility for the charging regime to fund water companies’ infrastructure fees; however, the 2024 Price Review has made the situation worse for many home builders.
The way these charges are calculated has changed, and since March 2025, the average developer wastewater charge has risen by an astounding 52%, in spite of the previously mentioned £2.3bn in contributions.
David O’Leary, executive director at HBF, said: “These delays are yet another example of how misalignment between planning authorities, utility companies, and national policy is choking off housing supply.
“Water companies are legally responsible for ensuring network capacity and have received £2.3bn from developers over the past five years to do so.
“Yet in the absence of clear national direction, planning permissions are being blocked, tens of thousands of homes delayed, and billions of pounds of community investment withheld.”
“With each passing month, the government’s ambitious housing supply targets are slipping further out of reach as public bodies and utility companies impose new barriers to delivery.
“While the Cunliffe Review rightly calls for long-term reform of the water sector, new homes are needed now. Government must reassert the statutory role of water companies, clarify how national policy should be applied, and ensure infrastructure investment reflects housing supply.”
Writing for PBC Today in August, Kevin Holmes of RSK Geosciences discusses the importance of surface water drainage strategies and discharge management, as well as upcoming changes to policy.
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