Gov Scraps EU Directive/Environmental Rule29 Aug 2023 13:13
Housebuilders jump as Gove scraps environmental rules
Shares in housebuilders are firmly on the front foot after the government announced it was scrapping UK environmental rules that developers say have prevented tens of thousands of homes from being built in recent years.
Persimmon PLC (LSE:PSN) rose 3.4%, Barratt Developments PLC (LSE:BDEV) climbed 2.7%, Taylor Wimpey PLC (LSE:TW.) advanced 2.5% and Vistry Group PLC (LSE:VTY) gained 4.5%.
The property industry has complained that Natural England, a government agency, has blocked the building of large numbers of new developments by enforcing so-called “nutrient neutrality” regulations designed to protect the country’s waterways.
The rules were introduced under an EU directive on habitats and reinforced by a 2018 European Court of Justice ruling that said adding nutrients to soil that was already in poor condition would be unlawful.
Housing secretary Michael Gove said: "We are committed to building the homes this country needs and to enhancing our environment."
"The way EU rules have been applied has held us back. These changes will provide a multibillion-pound boost for the UK economy and see us build more than 100,000 new homes."
"Protecting the environment is paramount which is why the measures we’re announcing today will allow us to go further to protect and restore our precious waterways whilst still building the much-needed homes this country needs," he added.