Housing Development Planning: Water Companies

Richard Fuller Excerpts

Wednesday 12th March 2025 Westminster Hall

[Helen Morgan]

The problem of historical sewers is particularly difficult, because there is no immediate developer to put on the hook. We certainly need a mechanism for dealing with historical sewers. It is a complicated problem, because we certainly do not want sewage from inadequate systems to start going into the main system, and it is difficult to say the taxpayer should to have to pay for something that happened a long time ago. Nevertheless, we need a mechanism to deal with historical sewers; there is no doubt about that.

The homeowners in The Pines in Higher Heath are in a situation where the developer has refused to rectify the issues and Severn Trent has washed its hands of the matter by returning the bond. They have nowhere else to go. One resident told me:

“The whole system has failed us, from start to finish…we have layers upon layers of Water, Building, Planning, Council Regulations, Controlling Authorities and processes and procedures, all designed to protect the public and the environment. Yet, a pre-existing local drainage problem, a planning process and building supervision and approval all failed to pick up and address it, and then allowed ‘defective’ drains to be built, then a Developer and a Utility company agree among themselves to terminate the S104 and totally wash their hands of us/the people who pay the taxes that fund the system that is supposed to protect us/the people.”

We see there the root of the problem. People who rely on the regulatory system to protect them in their homes are being hopelessly let down by a system that provides no protection when the worst happens and push comes to shove. Clearly, the section 104 process is not fit for purpose. The conveyancing process, when solicitors are involved, never seems to detect this type of situation either. I have sympathy for the people affected. When the section 104 agreement and bond have been put in place, and people have found that through their search, they should be able to have reasonable confidence that the sewerage network will be completed as planned.

I have raised many times the situation of people living in The Brambles in Whitchurch, so I will not go into all the details again. People bought houses in that development, but the developer was a rogue developer, who collapsed the company as soon as the final house was occupied. The sewage pumping system was inadequate, and another property was illegally connected to it. Fourteen households had to spend £1 million between them to fix that situation. Those householders were the people left holding the management company when everything crashed down around them, and they were liable to fix that situation. That was totally unacceptable, as well.

[Richard Fuller (North Bedfordshire) (Con)]

I congratulate the hon. Lady on securing this important debate. I have a couple of questions. In North Bedfordshire, the pace of housing growth is about two and a half to three times what it is nationally, and we also have two major watercourses—the River Ouse and the River Ivel. The issue with the way that section 106 moneys go with new housing developments is that it is always about the incremental impact on the network, but the problem is that the overall structure needs financial support. The hon. Lady has been thinking about making water companies statutory consultees. Does she think that that could help with a more comprehensive understanding of the impact across a network of any major development? Secondly, does she think that it could change the system to have greater demand for an escrow of funds by developers for the long-term issues she mentioned, rather than leaving those to individual householders?

[Helen Morgan]

The hon. Gentleman makes a good point, particularly about holding funds in escrow, which is a sensible suggestion. I am reluctant to let water companies off the hook, because they have made enormous profits, and they have been able to predict the growth in housing and changes in the weather, but they have done nothing to invest in the existing infrastructure. Let us not feel too sorry for them, but there clearly needs to be a long-term plan in place for overall infrastructure in an area. I agree that that needs to be taken into consideration in the planning process.

Local planning authorities have discretionary powers to try to prevent the situations I have described. They could stop occupation of the final properties on the development until the defective sewerage has been remediated. There are various conditions they could put in place up front to prevent these situations, but in practice that is not happening.