Debate on the role of water companies in new housing development planning

Water companies are not currently statutory consultees for new developments, although it is best practice to consult with them.

The only right to statutory consultation that water companies have is in relation to setting local plans or where a local authority has prepared a draft Local Development Order in which the interests of water companies are likely to be affected.

The Minister of State for Housing and Planning, Matthew Pennycook MP, issued a written statement on 10 March 2025 on Reform of the Statutory Consultee System. The statement relates to those who are already statutory consultees and sets out their role and purpose plus requirements for reporting on performance. If there is a consultation on the statutory consultees list, there may be the opportunity to consider the role of water companies as statutory consultees.

Participation in planning for new housing development

A water company may participate in the planning process in the following ways:

• As an asset owner, where under-utilised or vacant land is submitted through an LPA ‘call for sites’ and assessed by the LPA for housing, employment or another use for allocation in the local plan.
• As an interested party / stakeholder, where a water company may engage in the consultation stages of the strategic local plan process. This offers a key opportunity for water companies to comment on and respond to the emerging spatial strategy and proposed strategic housing sites in the draft local plan.
• As an infrastructure provider, where an LPA may choose to engage with a water company during the preparation or update of an infrastructure delivery plan.
• As an interested party / stakeholder, where a water company may respond to a public consultation on a planning application for a new housing development.

While a water company is not a statutory consultee, it is good practice for an LPA to engage water companies operating within their authority as part of the infrastructure planning process.

LPAs are required to prepare an infrastructure funding statement (IFS) which identifies the different types of infrastructure, the delivery plans, funding for implementation and responsible agencies. This is important to evidence the deliverability of policy and development proposals, including new housing development, proposed in the local plan.

LPAs will seek to engage in discussions with water companies on an ongoing basis to understand their business and investment plans for the local authority area, this is a requirement of the NPPF (paragraph 27). The water company can decide whether to participate in this engagement. Government’s planning practice guidance ‘plan-making’ (February 2025) states LPAs should agree a statement of common ground with infrastructure providers (paragraph 0023).