Thousands of new homes in limbo because of environmental restrictions

Bruce Sinclair, Local Democracy Reporter

More than 2,300 proposed homes remain in planning limbo because of environmental restrictions introduced a year ago, councillors have been told.

A report to Pembrokeshire County Council said 102 housing developments across the county are being delayed by Natural Resources Wales’ nitrogen neutrality requirements, with developers unable to secure planning permission unless they can demonstrate their schemes will not increase nitrogen pollution.

The developments account for 2,376 of the 6,741 homes currently proposed through the planning system.

Councillors heard the restrictions now affect around 75% of Pembrokeshire, including Haverfordwest, Narberth, Pembroke and Pembroke Dock, because of concerns over dissolved inorganic nitrogen entering the Milford Haven Inner Waterway, part of the Pembrokeshire Marine Special Area of Conservation.

The report, presented to the council’s Services Overview and Scrutiny Committee by Cabinet Member for Planning and Highways Cllr Jacob Williams, said 21 planning applications submitted before the guidance came into force in June 2025 remain undetermined because they have since been caught by the new rules.

A further 66 applications submitted after the guidance was introduced also remain undecided, while another 15 are expected to be affected once they reach the statutory determination stage.

Together, the 102 developments account for around 35% of all undetermined planning applications in the county, with the proportion rising further when refused schemes are included.

Cllr Williams said the council had no option but to apply the guidance.

“Pembrokeshire County Council cannot approve development which is unable to demonstrate nitrogen neutrality,” he said.

Last year, the council wrote to the First Minister expressing its “great concern” about the impact of Natural Resources Wales’ guidance on housing and other development.

In October, the council approved an action plan aimed at identifying ways of mitigating nitrogen pollution and unlocking stalled developments.

Much of the initial work has now been completed, with a final report due to be considered by Cabinet in September setting out potential mitigation measures that could allow affected schemes to proceed.

Members of the scrutiny committee noted progress on the action plan ahead of that report.