A system of water credits for housing developers to build up to 150,000 homes in water-stressed Cambridge has been set out by government to sidestep objections to new homes.
The plan to address water scarcity was unveiled jointly by the Department for environment (Defra), Environment Agency and the Department for levelling up and the local planning authority for Cambridge.
The proposed water credit pilot would allow developers to offset the water consumption of new homes by buying credits to have a neutral impact on overall resources in the area.
This, government said, would be a way for development to progress through the planning process while minimising environmental risks.
“Recognising the unique context in Cambridge, the government has made a one-off commitment to work with local partners to address the deficit in water supply, until water companies bring major infrastructure online, through a new water credits system,” government said.
A market framework and operator will be established to match up buyers and sellers of water credits. Credits will initially be created through retrofits of water efficient devices to existing properties to lower the building’s consumption, funded to the tune of £4.5 million by government.
A credit for the water saved will be bought by developers wanting to add homes and businesses within the same area.
Requirements of the market operator and the most cost-effective retrofit options are being explored before being launched later this year.
Homebuilders will be expected to make developments as water efficient as possible and include water reuse where possible. Water that cannot be reduced will be offset by buying the credits.
Water savings from retrofits will be monitored by metering data.
The coalition said the approach would alleviate objections to building taking place in water stressed areas.
As well as the credits approach, the group set out the strategy for long-term water security as developed by Cambridge Water and neighbouring Affinity and Anglian for a new reservoir and a transfer scheme.
Although water companies are not statutory consultees on planning applications, Cambridge Water’s water resource management plan (WRMP) stated there would be insufficient water to sustainably supply proposed developments in the region.
Developer incentives to build homes to use less than 110litres daily have been trialled by United Utilities, Severn Trent and Northumbrian.