The administration of Prime Minister Rishi Sunak is contemplating changes to the existing EU-era environmental law to soften restrictions on home construction in areas with a risk of contaminating rivers and water bodies.
The Conservative Party has faced criticism for failing to live up its commitment to constructing 300,000 homes annually, allowing the Labour Party, currently leading in the polls, to highlight its pledge to address the housing shortage.
The major issue to contend with is the "nutrient neutrality principles." This rule, which aims to prevent the discharge of pollutants into environmentally vulnerable sites, has been blamed by the Home Builders Federation lobby group for impeding the construction of 120,000 homes.
Housebuilders argue that the rule disproportionately affects them, requiring costly mitigation efforts, and especially harming smaller developers. At the same time, Natural England, the public body responsible for environmental protection, is clinging to the regulations, leaving the government in a pickle.
According to the latest Housing Pipeline Report, the decline in planning permission approvals for housing projects persists. In 2022, it hit the lowest level since data collection began in 2006, but this year it is expected to be even more disastrous. Only 3,037 planning projects were greenlit in Q1 2023 (a 20 percent drop compared to the previous year), making the lowest quarterly figure on record.
“Despite the fact we face an acute housing crisis, the Government’s policy approach continues to drive housing supply down...Whilst ministers prevaricate, housing supply is tumbling and the consequences are becoming ever clearer for young people in need of decent housing and builders’ jobs,” Stewart Baseley, executive chairman of the Home Builders Federation, says.
Some influential Conservative MPs support relaxing housing regulations to fulfill the party's commitment to revitalizing deprived areas and promoting homeownership. Others argue that water pollution is more a result of government and water company actions and that home construction contributes minimally to the problem.
Conservatives have long acknowledged that their electoral success is partially tied to the level of home ownership among the population and to a thriving economy in general. However, the Partygate scandal during Boris Johnson and Liz Truss' prime ministership dealt a blow to the Tories' reputation. As a result, their Cabinets were mired in public image issues rather than resolving economic problems.
In addition to wrestling with housing and environmental concerns, the Sunak government faces several other substantial challenges. A worrying inflation surge, cost of living crisis, and high energy costs, with several sectors showing signs of possible shutdowns, place additional pressure on the government's fiscal policies.
Over the past months, the country has been witnessing a wave of mass strikes across various industries, prompted by pay disputes and deteriorating working conditions, adding more to the economic troubles. These escalating pressures collide as the next general election approaches, intensifying the urgency for the government to address the country’s multiple and interlinked challenges.