Crest Nicholson Operations Ltd v Secretary of State for Housing, Communities and Local Government & Anor [2025] EWHC 2194 (Admin) (22 August 2025)

Crest Nicholson Operations Ltd v Secretary of State for Housing, Communities and Local Government & Anor [2025] EWHC 2194 (Admin) (22 August 2025)

The court held that the Secretary of State lawfully imposed Condition 6 requiring water neutrality as a precondition for occupation of the dwellings, based on a lawful and rational appropriate assessment under the Habitats Regulations. The Secretary of State was entitled to conclude, on the evidence and Natural England's advice, that it could not be ascertained with reasonable certainty that the development would not adversely affect the integrity of the Arun Valley Sites without such a condition. The court found no legal error, irrationality, or procedural impropriety in the decision-making process, and dismissed the claim.

Citation
[2025] EWHC 2194 (Admin)
Parties
Claimant: Crest Nicholson Operations Limited; First Defendant: Secretary of State for Housing, Communities and Local Government; Second Defendant: Horsham District Council
Jurisdiction
England and Wales
Judgment Date
22 August 2025
Procedural Posture
Planning Statutory Review Under Section 288 Town and Country Planning Act 1990 / High Court Judgment on Claim to Quash Secretary of State's Decision
Outcome
Claim dismissed
Legal Topics
Habitats Regulations Assessment, Water Neutrality, Appropriate Assessment, Judicial Review, Planning Permission Conditions, Statutory Review, Conservation of Habitats and Species Regulations 2017, Town and Country Planning Act 1990
Planning Law Environmental Law Administrative Law EU Law Habitats Regulations Assessment Water Neutrality Appropriate Assessment Judicial Review +4 more

Case Brief

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Parties

Crest Nicholson Operations Limited

Claimant

Secretary of State for Housing, Communities and Local Government

First Defendant

Horsham District Council

Second Defendant

Procedural Posture

Planning Statutory Review Under Section 288 Town and Country Planning Act 1990 / High Court Judgment on Claim to Quash Secretary of State's Decision

Legal Issues

  1. 1 Whether the imposition of Condition 6 (water neutrality) was lawful under the Habitats Regulations and TCPA 1990
  2. 2 Whether the Secretary of State and Inspector erred in law or acted irrationally in their assessment of groundwater abstraction impacts and regulatory obligations
  3. 3 Whether uncertainty regarding future actions of the Environment Agency and Southern Water invalidated the appropriate assessment under the Habitats Regulations

Ratio Decidendi

The court held that the Secretary of State lawfully imposed Condition 6 requiring water neutrality as a precondition for occupation of the dwellings, based on a lawful and rational appropriate assessment under the Habitats Regulations. The Secretary of State was entitled to conclude, on the evidence and Natural England's advice, that it could not be ascertained with reasonable certainty that the development would not adversely affect the integrity of the Arun Valley Sites without such a condition. The court found no legal error, irrationality, or procedural impropriety in the decision-making process, and dismissed the claim.

Court Disposition

Claim dismissed

Orders

  • The claim for judicial review/statutory review is dismissed.
  • The Secretary of State's decision to approve the reserved matters subject to Condition 6 stands.