Since April 2018 a number of major Reforms have taken place in the Water and Sewerage Sector many of which will have a major effect on the commercial viability of most developments and subsequently a House Builder’s ability to acquire land. The accumulative result will be a significant increase in costs for the provision of water and sewerage infrastructure with the potential to adversely affect cash flow and therefore RoCE/ROA. In some instances the changes taking place will be a barrier to housing delivery.
For many House Builders the consequences of these changes are either not fully understood or shrouded in complexity. In some instances, costs for water and sewerage infrastructure are deemed a “necessary evil”, but to challenge them is considered by some to be futile, in addition to leading to further delays. Unfortunately, things will only get worse for the development community.
For the first time in over 30 years since privatisation of the Water and Sewerage Sector two leading experts with over ninety years combined experience in the House Building Industry have come together to produce an Independent Report which endeavours to cut through the confusion and the “dark art” often associated with Water and Sewerage Sector costs and charging. This Independent Report exposes the inequity of the reformed charging regime and seeks to explain why House Builders will be paying significantly more over the coming years for the provision of water and sewerage infrastructure to serve new developments. It also identifies a series of related matters that are likely to be a barrier not just to the earliest practical start on site but reduced Sector competition and ultimately housing delivery.
Click here download the full report