OVERBEARING REGULATIONS ARE BLOCKING NATURE AND HOUSEBUILDING

• CEN has launched a new report, which concludes that supposedly pro-environment regulations are failing to restore nature whilst undermining housebuilding through a needlessly complex system

• The paper suggests market-led, conservative policies to fundamentally reform environmental regulations for building, most notably to Biodiversity Net Gain (BNG)

• Alongside 14 other policies, the paper’s proposals would fix successive Conservative and Labour failures to ensure BNG is a flexible system for housebuilders to restore nature whilst creating new revenue streams for farmers, unlocking a potential £3 billion industry

Today, the Conservative Environment Network has launched a new paper, In pursuit of harmony: how conservatives can restore nature and build the houses we need, which aims to fix environmental regulations that are holding back housebuilding and failing to restore nature. 

The UK remains one of the most nature-depleted countries in the world. But reams of regulations have provided little benefit for nature and served to add unnecessary red tape and complexity to building, putting a straitjacket on growth and increasing house prices. 

Despite tough words, Labour’s plans to get Britain building are underwhelming. They have reduced housing targets in urban areas, which pushes people outside of cities, increases rent prices, and fails to create beautiful, nature-friendly homes. Instead of cutting red-tape for businesses, Labour has established 12 new quangos and given extra power to Whitehall. Finally, they have also removed the need to consider beauty in approving new developments. Failure to build beautifully, including creating spaces for nature, leads to ugly houses, undermines access to nature, and ultimately contributes to a declining pride of place in Britain. 

With these challenges in mind, CEN has proposed a suite of new policies to enable more homes and more nature. The policies prioritise streamlining regulations that work for both nature and housebuilding. Instead of relying on taxpayers’ money and government meddling, CEN’s approach prioritises private investment to uplift nature. Finally, CEN’s proposals recognise the importance of creating beautiful, new communities, both inside and out of cities. 

Some of the key policy proposals are highlighted below: 

Policy 1: Fundamentally reform Biodiversity Net Gain by equalising on-site and off-site nature restoration

Biodiversity Net Gain in principle works, but the last Conservative government failed to implement it correctly. Currently, new housebuilding requires a 10% increase in biodiversity (BNG). However, the government decided to incentivise on-site improvements, dictating housebuilders must deliver 25-50% more improvements to nature for offsite BNG. 

This has squandered a unique opportunity. Off-site restoration provides flexibility for developers, especially SMEs building small developments, as they can buy nature credits through a natural capital market rather than having to uplift nature on-site. 

Natural capital markets have significant benefits for the wider economy. They can provide additional revenue streams for farmers and land managers who can be paid by developers to turn land into new habitats. This industry alone could add up to £3 billion to the UK economy. 

Therefore, to stimulate natural capital markets, the government should equalise off-site and on-site BNG. 

Policy 2: Slash red-tape stopping developers and communities from improving nature

It is often far too burdensome for housebuilders to hit 10% BNG on-site. Additionally, it is unnecessarily difficult for communities themselves to bring nature to their local communities. 

To make it easier for builders to hit their target and create greener, beautiful communities for people to live in, the government should expand permitted development rights (PDRs) for ponds and wetlands, simplify rules preventing the planting of street trees, and cut red tape on facade gardens for houses.

Policy 3: Increase housing targets in cities alongside the requirement for beautification in new developments

In cities like London, a lack of housebuilding and increased migration has caused an explosion in house prices. This is stopping hard working people from buying houses and laying down roots in their communities. Younger people overwhelmingly want to live closer to transport links, essential amenities, and their friends and work. 

But houses should not simply be concrete jungles, diminishing access to nature, and undermining pride of place.

The government should increase housing targets in cities, alongside reintroducing beautification requirements and gentle density of new housing stock.

Policy 4: Full expensing for brownfield sites

Brownfield sites are obvious places to prioritise building. They reduce pressure on green spaces whilst improving often derelict, unused sites. 

‘Full expensing’ enables developers to deduct the investment costs of new homes from their tax liability, making more brownfield sites viable. It is estimated this could lead to 150,000 more brownfield homes being started each year. The economic boost of this could lead to an average return of 17% to the Exchequer, or £4.3 billion in downstream tax from the growth of the sector and economic development near brownfield sites.

Nature Programme Office Elliott Malik for the Conservative Environment Network said: 

“We must urgently ramp up housebuilding and restore nature. Despite these often being considered competing aims, they are intrinsically linked. We must build more houses so hard working people can live near to their workplaces and raise families, and we need to restore nature to put pride back in our communities and make our country a truly green and pleasant land.

“We must harness private investment and liberalise builders to help enhance nature. By reforming Biodiversity Net Gain to ensure developers are not penalised for taking nature conservation measures off-site, we would make it easier for developers to build the housing we need and restore large tracts of our natural environment. Equally, full expensing for brownfield sites would unlock much-needed regeneration in our cities, whilst reducing the pressure to build on virgin soils.”

Discussing BNG, CEN MP David Simmonds and Shadow Minister for Levelling Up, Housing, and Communities said: 

“We are the party of homeownership, but our nation is in dire need of more houses and building them is too often bogged down in disputes and delays. At the same time, we must not build soulless, concrete shoeboxes that no one wants to live in. 

“Environmental regulations must be fundamentally reformed. They’re failing to restore nature whilst adding unnecessary complexity and barriers to building. Equalising on- and off-site BNG is a sensible start that would give housebuilders much-needed flexibility and confidence. It would also help to unlock a multi-billion pound new source of income for farmers and land managers, grow our economy, and restore nature to our green and pleasant land. 

“Additionally, reintroducing the requirement to consider beauty in building, expanding PDRs for nature projects, and broadening the scope of on-site BNG to include gardens are welcome suggestions. They would all make it easier for housebuilders to create more beautiful neighbourhoods, bring nature back to local areas, and bring local communities on board with new housing.”

Discussing red tape on restoring nature, CEN MP Rebecca Smith said: 

“The planning system is a mess, and it is stopping people from improving their local communities. People should be empowered to restore the environment, not restrained by unnecessary government regulations.

“We need a radical removal of red tape holding back developers, farmers, and communities from restoring nature. Permitted development rights should be expanded to include wetlands and ponds, and unnecessary barriers to creating facade gardens should be lifted. 

“It is a great British instinct for people to improve their homes and communities to bring a touch of nature closer to them. It is time to declare war on the red tape blocking nature and allow the British people to improve their local environment.” 

Discussing red tape on restoring nature, CEN MP Aphra Brandwith said: 

“Britain is losing too much of what makes it special. Nature is in decline and our precious countryside is disappearing, and overbearing red-tape is making it worse. It is time we give the British people back the ability to improve their lives as they see fit. 

“Britain needs more nature and green spaces - the little things that turn houses into homes and transform isolated developments into proud communities. From façade gardens to ponds, red tape is preventing us from improving our homes and local communities.

“It is time to end the misguided laws that have infiltrated our planning system and held nature back.”