Government Announces Section 106 Changes

Hopes to Unlock Housebuilding 

The Government has set out plans to “reset” the Section 106 (S106) system in a bid to accelerate housing delivery. The proposed changes are intended to ease pressures in the development pipeline and help bring forward stalled schemes. 

With a substantial number of S106 homes currently uncontracted and unsold, the Government is introducing a temporary emergency measure enabling local planning authorities (LPAs) to revisit existing agreements where specific criteria are satisfied. This will allow the tenure mix of affordable homes to be adjusted in order to secure purchasers and move developments forward. 

Looking beyond this immediate intervention, ministers have outlined a broader programme of reform aimed at simplifying and strengthening the S106 framework. Planned measures include the introduction of a standardised template agreement for LPAs, clearer guidance on the quality and compliance standards expected of S106 homes, and the provision of low-interest loans to private registered providers delivering these properties. 

In parallel, the second phase of the New Homes Accelerator has been launched to help speed up housing projects across England. The programme’s support has now been widened to include smaller developments of fewer than 500 homes. Activity in London will also increase, supported by a new planning assistance service for borough councils designed to help unblock schemes and boost delivery.