The United Kingdom faces a growing housing crisis, similar to many other countries around the world.
Housing supply continues to fall short of demand, particularly for low-income households, making it increasingly difficult for many people to secure affordable homes.
London, the UK’s largest city and economic center, accounts for nearly a quarter of the country’s economy. However, housing shortages and rising property costs are increasingly constraining economic growth.
While building more homes is widely viewed as the long-term solution, progress is being slowed not by a lack of land or financing, but by strained wastewater infrastructure.
A report from the Home Builders Federation revealed that nearly 30,000 homes, including around 7,000 affordable homes, have been delayed due to inadequate wastewater infrastructure capacity.
According to the report, developers have paid almost £2.3 billion to water companies since 2020 to support infrastructure upgrades, yet planning approvals continue to be delayed due to sewerage capacity concerns.
The report emphasizes that responsibility for wastewater infrastructure lies with water and sewerage providers, not individual developers. This disconnect is creating significant delays across the housing sector, particularly for smaller developers, while also slowing associated investments and broader community benefits.
David O’Leary, Executive Director of the Home Builders Federation, stated:
“These delays are yet another example of how misalignment between planning authorities, utility companies, and national policy is choking off housing supply.”
Wastewater infrastructure challenges in the UK
The UK’s wastewater infrastructure, particularly sewer networks and treatment facilities, has struggled to keep pace with population growth, urban development, increased stormwater runoff, and stricter environmental standards.
Much of the country relies on combined sewer systems that carry household wastewater, industrial waste, and stormwater runoff through the same network before treatment.
During periods of heavy rainfall, combined sewer overflows (CSOs) release untreated sewage into rivers and coastal waters to prevent system overload.
These discharges contribute to water pollution, public health risks, and environmental damage. They can also affect tourism, recreational water activities, and seafood safety.
Beyond wastewater concerns, the UK is also facing broader water infrastructure challenges driven by aging assets, underinvestment, leaking pipes, climate pressures, and population growth.
A report from the National Audit Office (NAO) found that England could face a daily water shortage of 5 billion liters by 2050. The report estimates that the sector needs to increase investment by 70%, reaching approximately £47 billion over the next five years.
Decentralized wastewater systems as a housing solution
Decentralized and compact wastewater treatment systems may offer a practical solution to both the UK’s aging infrastructure and housing supply challenges.
One example is Desah’s modular wastewater treatment technology, developed in the Netherlands. The system is designed to be scalable, flexible, and environmentally efficient.
A single modular unit can process between 5 and 350 cubic meters of wastewater per day, serving approximately 150 to 2,500 people. Unlike traditional centralized infrastructure, decentralized systems can be installed more quickly and deployed where additional capacity is needed, such as in residential developments, office buildings, resorts, remote communities, or existing wastewater treatment facilities.
The system also supports circular economy principles by recovering and reusing water, energy, and nutrients.
Desah’s approach separates blackwater from toilets from graywater generated by showers and washing machines. Blackwater is collected using vacuum toilets and vacuum sewer systems, reducing water use for flushing by up to 90%. Waste is then processed to recover energy and nutrients for reuse.
Graywater is treated separately using energy-efficient methods and can either be discharged locally or reused for applications such as irrigation or toilet flushing.
These decentralized systems have already been implemented in neighborhoods in Sneek and Helsingborg, serving communities of approximately 200 and 1,000 homes, respectively. Similar systems have also been deployed in Canada, Germany, and other locations worldwide.
According to Water magazine, Desah’s decentralized approach aligns with the UK’s growing focus on water neutrality, circular-economy goals, and net-zero carbon targets. By treating wastewater onsite, developers may reduce the need for large-scale network upgrades and costly infrastructure charges, while utilities gain more flexible responses to localized infrastructure constraints.
A flexible approach to future infrastructure
The UK’s housing shortage, aging water infrastructure, and growing climate pressures highlight the need for more flexible and innovative infrastructure solutions.
Decentralized wastewater treatment systems offer an alternative to traditional centralized models by providing scalable, durable, and faster-to-deploy infrastructure with lower long-term operating and maintenance costs.
As demand for housing and resilient infrastructure continues to grow, flexible wastewater solutions may play an increasingly important role in supporting sustainable urban development across the UK.
Sources:
Dunning, H. (2023, January 30). Sewage overspills result from lack of infrastructure investment, research shows. Imperial. Retrieved from https://www.imperial.ac.uk/news/242831/sewage-overspills-result-from-lack-infrastructure/
Owen, M. (2025, November 10). How does London’s housing crisis affect the UK economy? BBC. Retrieved from https://www.bbc.com/news/articles/c1k0lyy7wvdo
Regulators have failed to deliver a trusted and resilient water sector. (2025, April 25). National Audit Office. Retrieved from https://www.nao.org.uk/press-releases/regulators-have-failed-to-deliver-a-trusted-and-resilient-water-sector-nao/
Inconsistencies in wastewater policy application see 30,000 new homes delayed despite £2.3bn in water company payments by developers. (2025, September 1). HBF. Retrieved from https://www.hbf.co.uk/news/drain-nation-release/
Unlocking UK housing & infrastructure with compact, modular wastewater treatment. (2026, March 4). Water Magazine. Retrieved from https://www.watermagazine.co.uk/2026/03/04/unlocking-uk-housing-infrastructure-with-compact-modular-wastewater-treatment/
Desah source-separated wastewater treatment. (2026). Desah. Retrieved from https://desah.nl/en/products/source-separated-wastewater-treatment/
Circular wastewater treatment: solutions from industry in the Netherlands and Sweden. (2024, August 2024). European Commission. Retrieved from https://environment.ec.europa.eu/news/circular-wastewater-treatment-solutions-industry-netherlands-and-sweden-2024-08-29_en
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