The 'nutrient-neutral rules' state that local authorities must not approve any new development that is expected to increase nutrients (such as phosphates and nitrates) in a river, either through wastewater from new homes or run-off from building sites.

The rules were issued by the EU, but developers argue that Natural England is enforcing them so aggressively that as many as 120,000 new homes have been put on hold.

UK Prime Minister Rishi Sunak said the move would be "a boon for young first-time buyers".

"It was an old, disproportionate and poorly targeted EU ruling that previously prevented the building of these homes", he added in a speech at a new housing estate in Norwich.

Stewart Baseley, executive chairman of the Home Builders Federation, said homebuilders were "keen to play their part in protecting rivers" but the current rules "exacerbate another national crisis, our shortage of homes".

New homes make a negligible contribution to the problem of river pollution, which is caused by agricultural practices and water company failures, he added.

Environmental organisations are concerned.

Doug Parr, head of policy at Greenpeace UK, said: 'Who looks at our sickly, sewage-fuelled rivers and concludes that what they need is weaker pollution rules?' No one, and that should include our government.

Removing or weakening restrictions on chemicals in sewage and farm run-off certainly shows that ministers have all but given up on saving our great waterways and the precious wildlife they carry.

Instead of allowing housebuilders to cut corners, the Sunak government should ensure that we have the right infrastructure in place to deal with sewage so that we can do so without sacrificing the health of our rivers.

"But that will require them to do what they have completely failed to do so far - force water companies and house builders to invest their profits in upgrading sewage treatment plants and pipes to the standards expected of a modern, functional nation."