Nutrient Nutrality Update 24.05.2023
Key Updates
Currently an estimated 16000 houses are on hold in the Nutrient Neutrality area.
We have been informed the first credits for purchase will be available ‘by the end of the summer’ for the Yare catchment area. Wensum catchment following and finally Bure.
Credits are expected to be £5000 for a credit to cover 0.1P/yr. This will roughly equate to £5000 per dwelling dependant on catchment.
Norfolk Environmental Credits Ltd (NEC) expects to have credits available for all planning applications currently on hold.
A streamlined Shadow Habitat Regulations Assessment (SHRA) form is in development for sites below 10 dwellings.
All applications must submit their completed NN calculator to NEC for credit quotation purposes.
A subsidiary company is in the works to buy credits from dwellings which upgrade from septic tanks to package treatment plants.
NEC will look to sell other credits in the future including net biodiversity gain.
DFAL were in attendance at a meeting on 22nd May 2023 to update the industry on Nutrient Neutrality and the new credit brokerage company which has been brought into existence.
Norfolk Environmental Credits Ltd (NEC)
NEC has been set up as a credit brokerage to act between developers and credit suppliers. It has been stated that NEC has been set up as a non-profit organization and all fund generated will be routed to the implementation of further mitigation schemes.
We understand the credit suppliers will be private landowners whom will retain ownership of the land but will agree to changing the long term land use. NEC will pay landowners for this.
Some funds will also be directed to Anglian Water subsidy Anglian Water Venture Holdings for the upgrade of treatment plants in affected catchments to a level over and above the statutory requirements which are discussed later.
NEC will also be making an application to the Local Nutrient Mitigation Fund for funding to assist in the implementation of mitigation solutions. It was indicated that £10mill may be made available by the central government for this effort.
Mitigation Schemes
Royal Haskoning (RH) were present with a general update of their work. RH has mapped all planning applications on hold and identified areas where mitigation will be most effective. RH proposals cover anticipated development up to 2038. A portfolio of mitigation methods have been proposed which will include:
Riparian Buffers
Wet Woodlands
Change of farmlands
Upgrades of existing social housing stock
Septic tank upgrades to treatment plants
Anglian Water (AWA)
Anglian water’s Richard Boucher was present and explained their approach to the problem. At this time AWA are detailing their upgrade plans spanning from 2025 to 2030. The extent of these upgrades is subject to the content of the Levelling Up and Regeneration Bill which has recently been amended to include further requirements for the water companies to address Nitrogen and Phosphate pollution.
It was made clear that the statutory required upgrades to treatment works would not form NN credits, however they would reduce the calculated run off and would thus reduce the costs of credits to mitigate. AWA has identified 15 sites in Norfolk for potential upgrades and subject to the content of the above bill are expecting the following sites to be improved: Dereham by 2025, Fakenham by 2025 and Whitlingham by 2027.
It was indicated that funding from NEC would be used to upgrade treatment works in the catchment areas to over and above the statutory level. Again this would not directly create a credit but rather reduce calculated run off.
DFAL Commentary
This issue is now a year on and the number of homes on hold is now over 16000. This does not take into account those planning applications which have not been submitted in the last year due to the NN issue not warranting the investment. The housing on hold represents an approximate gross sale value of £4.5 billion based on the average Norfolk house price. A significant portion of revenue for builders large and small which is still stuck in the planning system.
It appears however that things will finally be able to get moving again by the end of summer in the Yare catchment area at least. It was not made clear when the Wensum and Bure catchments would come online.
It is anticipated that when the planning system does start moving again there will be significant delays in approval being issued for applications old and new due to the backlog of applications. If you have a site on which you are considering a planning application, now may be the time to begin the process. If late summer is achieve for the credit scheme as stated a project undertaken now would within reason be ready for submission just as the credit scheme comes online.