The Government has confirmed that Natural England’s advice requiring developers to demonstrate water neutrality in parts of West Sussex will be withdrawn from 1 November 2025.
But what does this mean for landowners, developers and investors? Our Sussex-based planning team explores.
The change follows a Government package of measures announced on 9 October, aimed at resolving the long-standing constraints that have affected housing delivery across Crawley, Horsham and Chichester – and a small area of Mid Sussex-within the North Sussex Water Resources Zone.
Since Natural England first issued its position in 2021, development in these areas has been severely restricted, with around 21,000 homes delayed, including 4,000 already in the planning system.
The advice stemmed from concerns that water abstraction from an aquifer near Pulborough was impacting local wetlands and habitats, particularly those supporting rare species such as the Lesser Whirlpool Ramshorn Snail.
To address this, the Government has worked with Southern Water, Natural England, the Environment Agency, and the RSPB to agree a new mitigation package.
Southern Water has voluntarily reduced its abstraction licence for the aquifer, alongside on-site environmental improvements under the Water Industry Natural Environment Programme (WINEP). These measures have provided Natural England with sufficient confidence to lift its advice.
From 1 November, developers will no longer be required to deliver offsetting measures or demonstrate water neutrality.
Instead, water efficiency standards will revert to those set out in the Building Regulations, although enhanced standards for water-scarce areas will continue to apply in line with ongoing Government consultation on updates to Part G.
This change is a significant step forward for the region. It removes a key barrier that has constrained development for nearly four years, allowing local authorities and developers to progress stalled housing sites and restore momentum to local plan delivery.
However, questions remain about how this update will be applied in practice. It is not yet clear how Local Planning Authorities (LPAs) and Natural England will treat schemes that have already demonstrated water neutrality but are yet to be implemented, nor whether the withdrawal will apply equally to commercial as well as residential development.
