The UK Government has set out a roadmap to significantly improve how Section 106 (S106) agreements deliver affordable housing in England, combining both short‑term measures to unlock stalled units together with long‑term reforms to make the system clearer, fit for purpose and more resilient.
S106 agreements will remain a core mechanism for delivering affordable homes and supporting wider housing supply but we need a reset because, in recent years, a combination of higher financing and construction costs, the need for investment in existing stock (including building safety and decarbonisation) and concerns about whether some S106 units meet evolving quality and space standards has impacted the market. The result has been a build‑up of uncontracted S106 homes, delaying build‑out and disrupting both affordable and market housing delivery. The Government’s roadmap responds to these issues with immediate and structural measures.
Immediate action to unlock legacy uncontracted S106 homes
The Government has published temporary guidance to LPAs designed to make it easier for Developers to change the tenure mix of affordable housing on sites where the on-site affordable housing cannot be disposed of to a registered provider.
There are several conditions:
- Developers should have exhausted all reasonable endeavours to find a registered provider.
- Developers must have uploaded any uncontracted S106 homes onto the Homes England Clearing Service by 1 June.
- Homes should be live on the Clearing Service for a period of six weeks from the date of the unit being uploaded.
- The S106 homes should be due for completion on or before 1 December 2027. Importantly, LPAs are advised that any homes not completed by this date should revert to the tenure set out in the original section 106 agreement.
Where these conditions are met, LPAs must consider variation to tenure, private market rent or a financial contribution in lieu of on-site AH provision.
Supporting Local Planning Authorities to negotiate S106 agreements
The Government aims to reduce time spent on negotiation by providing clearer guidance and, importantly, template section 106 agreements.
Laying foundations for a simpler long‑term system
Beyond immediate interventions, the roadmap sets out plans to streamline obligations, align standards, and ensure S106 remains effective in supporting national affordable housing delivery over the long term.
John Gregory (Planning Partner at Weightmans) commented that “Whilst the guidance on variation is a temporary measure, this roadmap is a positive and pragmatic step towards unblocking stalled delivery and restoring confidence in Section 106. Used properly, section 106 is a valuable and flexible way of securing site-specific mitigation, but we have long argued for a clearer, more consistent policy framework and for a suite of model section 106 agreements. If implemented at pace, these measures should result in quicker permissions and help get some stalled sites moving”.
The roadmap responds to pressures facing RPs and housebuilders by proposing clearer standards, reduced negotiation friction and improvements that may make S106 acquisitions more viable. For housebuilders, unlocking stalled S106 units and simplifying negotiation processes should support build‑out rates, reduce delays and improve financial certainty.
Jen Hankinson (Housing & Regeneration Partner at Weightmans commented that “it is clear from Homes England’s recently published SAHP guidance also that there is a real push for RPs to provide affordable and social housing via s106 acquisitions (given the reference to HE collecting data on s106 units delivery despite grant not being applicable) and we continue to work with our RP and developer/housebuilder clients on collaboration to achieve this end goal”.
Read our previous insights on s106 schemes
Unlocking housing delivery: section 106 scheme bids – key considerations for developers (Partners, Karl Jackson, John Gregory and Owen McKenna)
Failure to correctly publish a Section 106 Agreement: no excuses! (Paralegal, Morgan Moffett and Trainee Solicitor, Matt Clover)
