Housing sector issues guidance aimed at improving section 106 outcomes

The organisations said the guidance they co-authored and which has now been endorsed by the Government “highlights how early involvement and greater collaboration in the planning process enable local authorities, housing providers and private developers to work together to build homes that meet local needs, as well as ensuring that the homes can be managed in a long-term, sustainable way”.

The publication aims to set a voluntary advisory standard to improve the S106 process for all involved, “driving more efficient, effective and consistent outcomes and helping deliver the right homes for those in need”.

The guidance includes a statement of collaboration between partners, and sets out a number of shared principles, alongside key matters that should be discussed openly and at an early stage, between all parties across the S106 affordable housing delivery journey.

The organisations explained that while S106 has historically delivered almost half of all new affordable housing, in recent years housing providers have been buying fewer of these properties from developers due to a combination of factors.

Gavin Smart, chief executive of the Chartered Institute of Housing, said: “CIH is pleased that the government has endorsed and published our cross-sector S106 guidance.... S106 agreements are an essential route to deliver much-needed affordable homes, and this requires the commitment from everyone in the housing sector to work in a timely, collaborative and effective way. We will continue to work with our members to deliver these homes, and ensure everyone has a place to call home.”

Kate Henderson, Chief Executive at the National Housing Federation, said: “I’m pleased that the government has endorsed this important, cross-sector guidance, which will help ensure that S106 delivers the right homes for people across the country. We know that S106 is a vital part of affordable housing delivery, providing almost half of all new social and affordable homes, but it’s clear that there’s been a need to improve the system.

“Our research showed that a truly collaborative approach between housing associations, developers and local authorities was the vital ingredient needed for making this process work. We’re confident that with this guidance, alongside wider reforms to the system, S106 will continue to play a crucial role in delivering truly affordable homes for our communities.”

Neil Jefferson, Chief Executive of the Home Builders Federation, said: “Section 106 agreements are a vital source of much-needed Affordable Housing, supporting the provision of mixed tenure developments and helping to speed up the delivery of new homes of all types. For some time the market for Section 106 homes has been challenged. This guidance, produced collaboratively with input from across the housing and local government sectors, aims to support a swifter, smoother process for all parties.”

Cllr Liam Robinson, Chair of the Local Government Association’s Inclusive Growth Committee, said: “Our housing crisis will not be fixed until we deliver enough new homes to keep up with our growing population, and affordable homes must be a core part of that supply. This engagement guidance will help councils deliver the affordable homes our places need.

“Section 106 is an important tool to deliver the affordable housing and infrastructure our communities need to make places thrive. This co-designed guidance is a positive step to ensuring consistent outcomes through Section 106.”