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Almost 30,000 new homes are being blocked over concerns about inadequate wastewater infrastructure, the Home Builders Federation (HBF) has claimed.

A new report from the trade body, which represents residential developers, noted that firms in the sector had paid almost 拢2.3bn to water companies to support upgrades since 2020. However, it said planning permissions were still being refused or delayed on the basis of claimed sewerage capacity issues. 

In many cases, water companies had not raised objections and national policy was not being applied consistently, the HBF said.

David O鈥橪eary, its executive director, added: 鈥淭hese delays are yet another example of how misalignment between planning authorities, utility companies and national policy is choking off housing supply. 

鈥淲ater companies are legally responsible for ensuring network capacity and have received 拢2.3bn from developers over the past five years to do so. 

鈥淵et, 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.鈥�

The HBF pointed to national planning policy stating that responsibility for wastewater infrastructure fell to water and sewerage undertakers, rather than to individual planning applicants. It also said the National Planning Policy Framework was clear that local planning authorities should assume infrastructure providers will meet legal duties.

Water companies in the UK have come under increased scrutiny and political attention in recent years over perceived failures to improve national infrastructure and protect the natural environment. The recent Cunliffe Review, carried out by the Independent Water Commission, found there was an urgent need for systemic reform in the sector.

O鈥橪eary said more immediate solutions were needed to unlock housing delivery. 鈥淲hile the Cunliffe Review rightly calls for long-term reform of the water sector, new homes are needed now,鈥� he said.

鈥淭he government must reassert the statutory role of water companies, clarify how national policy should be applied, and ensure infrastructure investment reflects housing supply.鈥�

He urged ministers to reaffirm existing planning policy, remind councils of water companies鈥� statutory responsibilities and ensure that housing targets are properly reflected in long-term water resource management and wastewater infrastructure plans.