Sewage deal set to release thousands of new homes

About 18,000 new homes could be built after a deal was struck over a city's ageing sewage system, the government has said.

The Environment Agency (EA) has previously objected to housebuilding in and around Oxford due to a threat to water quality.

However, the agency has now approved Thames Water's plans to upgrade Oxford Sewage Treatment Works from 2027.

The government said the agreement could be a model to unlock stalled developments around the country.

Previously, Oxford City Council said the EA had objected to a key planning blueprint for housebuilding up to the year 2040.

The agency also objected to 1,400 new homes at Bayswater Brook, which were nevertheless approved in October 2024.

Thames Water previously said an initial upgrade to infrastructure including Oxford Sewage Treatment Works was expected to be completed in 2027 with a “full solution” by 2031.

The government said that plan had now been approved by the agency.

It said the EA would no longer seek a planning condition over proposed developments.

EA chief executive Philip Duffy said: "After a rigorous process, we have secured the water services and environmental protections which communities in Oxford need to thrive in their new homes.

"Oxford City Council now have everything they need to decide if the development goes ahead."

Council leader Susan Brown said the authority would "work at pace to unlock the growth and new homes currently stalled across the city".

Chancellor Rachel Reeves added: "This work to unlock housing and commercial development in Oxford is just the kind of action that will unleash the potential of the Oxford-Cambridge Growth Corridor and grow our economy."

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