Forcing councils to open s. 106 deals could harm infrastructure: LGA

Efforts by councils to ensure that new housing developments have appropriate infrastructure such as roads, schools and parks could be undermined by the Government’s proposals to allow developers to force councils to open s. 106 agreements, the Local Government Association has warned.

Launching a campaign dubbed Housing the Nation, the LGA said a survey of councillors found that public opposition to housing was the biggest barrier to the building of new homes.

More than half of the 576 councillors who responded (59%) said public opposition had been a barrier to housing developments in their area over the last two years.

More than four in five councillors (84%) reported that their local authority area was in need of new housing. Some 42% thought residents in their area were, on balance, opposed to housing.

However, only 11% of respondents suggested that in cases where developments come with the necessary infrastructure, residents would still be opposed.

The survey also revealed that:

• 49% of councillors said the financial position of developers had stopped the building of new houses;
• Almost all respondents said their local authority had taken action over the past two years to increase the supply of housing;
• 57% said their council had been working in partnership with developers to boost housing;
• 41% said they had renegotiated or phased s. 106 agreements;
• 37% said they had offered up land and assets; and
• 35% said they had brought empty properties back into use.

The LGA cited Government figures which suggested that only 106,050 new homes were built in 2010/11 compared to 160,030 in 1990/91. It is estimated that around 250,000 are required each year to meet demand.

The Association said its campaign was calling for new housing development to come with the necessary roads, schools and public amenities.

It also called for local authorities to be given access “to the money they need to build new homes and bring existing ones back up to scratch”, and the process of bringing back empty homes into use to be speeded up.

Cllr Keith House, Deputy Chairman of the LGA’s Environment Board, said: “It is widely recognised that we desperately need new homes. At the moment, there simply aren’t enough being built.

“Councils play a crucial role both in providing affordable and social housing and working with developers to plan new private sector housing. But to do this more effectively, local authorities need greater freedom and financial control to invest in new and existing homes. The constraints of Whitehall are preventing local authorities from tackling the housing crisis.”

Cllr House said people did not dispute the need for new housing but, “quite understandably”, they did not want a new housing estate if it was going to lead to congested roads and crowded classrooms.

He added: “Councillors have to balance the interests of their residents with the wider needs of the area. The current economic crisis means that new development is scarce and councils are doing what they can to encourage growth in their areas. This includes providing land and assets, overwhelmingly saying 'yes' through the planning process and, where appropriate, renegotiating Section 106 agreements.

“By allowing local authorities the flexibility to finance new homes and make best use of the homes already available councils can play a role turning the tide on the housing crisis and providing the new homes the country so desperately needs.”

See also: Planning our way to growth – Cllr Clyde Loakes on the Government’s proposals in relation to s. 106 agreements