09.10.2025
A landmark agreement between government, regulators and industry has ended the four-year halt on housing delivery in North Sussex. The deal, which safeguards local wetlands and wildlife while unlocking around 21,000 homes, marks a major breakthrough in efforts to balance environmental protection with the need for new housing — and provides the clarity the sector has long been waiting for.
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Families and communities in North Sussex are set to benefit from thousands of new homes following a landmark agreement between government, regulators and industry — ending a four-year halt on development while safeguarding local wetlands and wildlife.
The breakthrough, announced by the Government on 8 October, will enable around 4,000 previously stalled homes to proceed, with a further 17,000 now unlocked for future delivery.
This agreement marks a major milestone for the region and sends an important signal nationally that solutions to nutrient and water neutrality issues are achievable, allowing sustainable growth to resume without compromising environmental protections.
Under the deal — reached through Defra’s Water Delivery Taskforce and agreed by Natural England, the Environment Agency and Southern Water — water abstraction permits will be revised to reduce pressure on the Arun Valley’s sensitive wetlands and wildlife, while funding will be provided to restore local habitats. Importantly, these measures will be funded by the water company, not consumers.
All new homes will be required to meet enhanced water efficiency standards, ensuring that growth goes hand in hand with environmental resilience.
Environment Secretary Emma Reynolds described the announcement as “a win-win approach that unlocks growth while protecting and restoring the natural world,” while Housing and Planning Minister Matthew Pennycook said it “demonstrates how smart policy interventions can deliver the homes the country needs while safeguarding nature.”
For local authorities, developers and consultants, this is the positive step forward many have been waiting for. The pause on new housing in North Sussex — in place since 2021 due to concerns about water abstraction from the Arun Valley — has caused significant uncertainty and delays in bringing forward much-needed homes.
This latest agreement provides a clearer path to delivery, backed by government support and a renewed focus on sustainable water management.
At DHA Planning, we welcome this long-awaited progress and the Government’s recognition that environmental protection and housing delivery can go hand in hand.
As further details emerge on how this approach might be replicated in other affected areas, we’ll continue to monitor developments closely — and support our clients in navigating the changing policy and regulatory landscape.
For further information or advice on how this announcement could affect your development, please contact Jonathan Buckwell from DHA's Gatwick office.
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