Housing Crisis Exacerbated by Wastewater Infrastructure Delays

The UK's housing crisis is being further exacerbated by delays in wastewater infrastructure, according to a new report by the Home Builders Federation. The report, A Drain on the Nation, highlights that almost 30,000 new homes, including 7,000 Affordable Homes, are currently blocked due to concerns over inadequate wastewater infrastructure. This is despite developers having paid almost £2.3 billion to water companies since 2020 to support infrastructure enhancements.

Key Takeaways:

• Almost 30,000 new homes, including 7,000 Affordable Homes, are currently blocked due to concerns over inadequate wastewater infrastructure.
• Developers have paid almost £2.3 billion to water companies since 2020 to support infrastructure enhancements, yet planning permission is still being refused or delayed over perceived sewerage capacity issues.
• National planning policy dictates that responsibility for wastewater infrastructure lies with water and sewerage undertakers, not individual planning applicants.
• The National Planning Policy Framework (NPPF) makes clear that local planning authorities (LPAs) should assume infrastructure providers will meet their legal duties.
• Some water companies, such as Thames Water, have received significant developer contributions, yet continue to raise concerns over housing applications.
• The average wastewater charge for developers has risen by 52% since March 2025, despite developers having already paid almost £2.3 billion to the water sector.
• The number of homes delayed due to infrastructure issues is expected to grow further, worsening the housing crisis and eroding confidence in the planning system.

Statistics:

• £2.3 billion: the amount paid by developers to water companies since 2020 to support infrastructure enhancements.
• 30,000: the number of new homes currently blocked due to concerns over inadequate wastewater infrastructure.
• £900m: the estimated amount of Section 106 contributions that would have been generated by the 30,000 stalled homes.
• 52%: the rise in average wastewater charge for developers since March 2025.
• £440m: the combined payments and assets received by Thames Water from developers over five years.

Sources:

• A Drain on the Nation (report by the Home Builders Federation)
• National Planning Policy Framework (NPPF)
• Cunliffe Review by the Independent Water Commission