Water Shortages Threaten Housing Development in England
The looming risk of water shortages poses a significant challenge to the construction of over 60,000 new homes in England as part of the Government’s ambitious five-year building initiative, experts have cautioned. Local authorities, particularly in the east and south-east regions of England, are facing the most pressing threats to their housing plans. This is largely due to an increased housing target set by the Government amidst existing strains on water resources driven by population growth, rising temperatures, and diminishing rainfall.
Among the towns affected, Worthing in West Sussex stands out as the most severely impacted, with a staggering 2,190 proposed homes classified as “undeliverable” within the current government term. This figure represents 51 percent of the total housing proposals for Worthing over the next five years, according to the Enabling Water Smart Communities (EWSC) partnership.
Funded by Ofwat and spearheaded by Anglian Water, the EWSC program collaborates with key stakeholders including water companies, engineers, house builders, local governments, and academic institutions. Other local authorities facing significant challenges include Woking, with 1,795 homes deemed undeliverable, Cambridge with 1,905, and Ipswich, where 1,445 homes are at risk of being delayed, as highlighted in the EWSC report.
It is important to clarify that the EWSC researchers are not suggesting these homes will never be built; rather, they indicate that, under current regulations, “their construction will be postponed beyond the five-year period while water supply issues are addressed,” creating a substantial slowdown in the proposed development surge. Water companies are legally obligated to supply water to all new homes, and if they cannot meet this demand, they must notify the local authority, which in turn will halt the development.
An example of this issue is a 4,500-home project in Waterbeach, near Cambridge, which experienced a three-year delay after the Environment Agency raised concerns about water supply in 2021. The project finally received approval in December after the issues were resolved.
Shortly after assuming office last July, the Government raised England’s housing target to 1.5 million homes over five years, imposing new and often higher mandatory targets on councils. Cambridge, in particular, is viewed as a pivotal area for growth, especially after Chancellor Rachel Reeves announced plans in January to establish “Europe’s Silicon Valley” in the corridor connecting Cambridge and Oxford.
Researchers analyzed Labour’s housing targets alongside data on local water availability in the east and south-east of England. They found that approximately 12,300 homes annually will be classified as “undeliverable,” culminating in a total of 61,500 homes over five years. While the study focused on these two regions due to their significant water scarcity, the researchers believe that the threat of water shortages affecting new housing proposals extends to broader areas across the country.
Bertie Wnek, the lead author of the report from Public First and a former policy adviser to the Treasury on water issues, remarked to The i Paper: “Housing targets across large swathes of the country are jeopardized by water scarcity. This is especially true in regions where housing is most needed, such as Cambridge.”
Alistair Chisholm, director of policy at the Chartered Institution of Water and Environmental Management (CIWEM), noted that although the south-west of England is not formally classified as “water scarce,” it has also seen substantial increases in housing targets under the Labour government, raising concerns about its capacity to support the planned developments.
In contrast, pressures in regions further north, such as Yorkshire, Northumberland, Cumbria, and Lancashire, as well as in Wales and Scotland, are less acute. In January, Chancellor Rachel Reeves announced plans for nine new reservoirs aimed at preventing water shortages, as the Government prioritizes infrastructure projects to stimulate economic growth. However, Mr. Chisholm cautioned that these new reservoirs are long-term solutions, expected to arrive well after the 2029 deadline for the delivery of 1.5 million new homes. For instance, plans for a 150 billion-litre reservoir near Abingdon in Oxfordshire are not anticipated to be operational until 2039 at the earliest.
“In 2022, some households in parts of the south-east faced water shortages. Our concern is that a sudden and acute drought could have similar repercussions—especially if developments along the Oxford end of the Oxford-Cambridge Growth Corridor are increasing demand on already strained resources,” he added.
The first of England’s new reservoirs, Havant Thicket in Hampshire, is scheduled to open in 2031, marking the country’s first new reservoir since 1992. However, Mr. Chisholm emphasized that these new reservoirs will only satisfy a fraction of the demand. “The Government urgently needs to support water-saving initiatives to prevent the possibility of halted housing projects, supply interruptions, or our invaluable natural environment becoming the scapegoat, as is often the case,” he stated. “These initiatives require regulatory updates to accelerate their implementation and revisions to building regulations to mandate the incorporation of more efficient systems in new homes.”
James Stevens, director for cities and regions at the Home Builders Federation (HBF), remarked that the issues surrounding water scarcity stem from decades of insufficient investment in infrastructure. “We are faced with a pressing housing crisis, and regulators must ensure that utility companies are making the necessary investments to repair and enhance our national infrastructure,” he stated.
A Government spokesperson noted that they “inherited deteriorating water infrastructure” and warned that without further action, “demand for water will surpass supply by 2050.” They elaborated, “This is why we are facilitating £104 billion in private sector investment to develop infrastructure, including nine new reservoirs, various large-scale water transfer schemes, and 8,000 kilometers of water mains to deliver water where it is required.”
A spokesperson for Woking Borough Council mentioned that their housing plans are still in the preliminary stages, but emphasized that “as the new local plan evolves, collaboration with key stakeholders will help identify infrastructure deficits and constraints.” The Greater Cambridge Shared Planning Service, a partnership of South Cambridgeshire District Council and Cambridge City Council, indicated that a new pipeline expected in the early 2030s, along with the new Fens Reservoir, will enhance water supply.
Jim Thorndyke, Cabinet Member for Planning at West Suffolk Council, stated that a policy is in place to lower water consumption in all new homes “to meet our housing obligations while addressing water scarcity.” Ed Griffiths, chief analyst at Barbour ABI, which provides construction data to the government, shared with The i Paper that the threats to England’s housing development extend far beyond water scarcity. “Ensuring an adequate water supply is just one of many obstacles that housebuilders must overcome if the Government’s target of 1.5 million homes is to be realized. Rising costs, market uncertainty, and a shortage of skilled labor continue to challenge the industry. Insolvencies, including the collapse of major contractors like ISG, have delayed critical projects. A multitude of such issues has resulted in slow progress thus far,” he explained.
A spokesperson for Water UK added, “Water companies are ready to quadruple their investment in our aging infrastructure. Over the next five years, companies will invest £104 billion to facilitate the construction of more homes, support economic growth, secure our water supplies, and prevent sewage from contaminating our rivers and seas.”
The Environment Agency stated that it is committed to ensuring that water companies secure future water supplies in a manner that supports development and enhances the natural environment. A spokesperson for North Norfolk District Council mentioned, “While North Norfolk has been designated as an area of water stress, the Council has incorporated specific policies in its Local Plan that focus on water demand management to minimize the impact of new developments on water resources.”
