Section 106 Slowdown: Is Early Engagement a Solution or a Sticking Plaster?
As another report on section 106 is released – this time by a London HA group – could early engagement truly be the answer?
The G15 has released its guide to help encourage housebuilders to follow its steps to secure section 106 deals with housing associations.
Heralded as a “practical framework” for developers eyeing up section 106’s with HAs, the group has released its ‘Building Together, Building Better: Rethinking S106 for Affordable Housing Delivery’.
Authored by L&Q, the report issues 24 principles and standards for future homes in which housebuilders should meet unique needs by HAs across the UK.
The guidance highlights the importance of involving affordable housing providers in decisions about new projects from the earliest stages, preferably during pre-planning or land acquisition.
The G15 advocates for this approach, as it ensures the creation of communities that genuinely address the long-term needs of all residents.
Additionally, the G15 Emphasises the Need for Sustained Collaboration and Transparency
This includes regular meetings, joint decision-making on specifications and components, and site visits to oversee the delivery of homes.
In 2023/24, Section 106 homes -affordable properties acquired from housebuilders as part of planning requirements – comprised approximately 40% of affordable homes delivered in England.
However, there has been a noticeable decline in interest among housing associations in purchasing these homes.
Instead, many have shifted their focus to ‘land-led schemes,’ where the association acquires or owns the land. This approach aims to provide greater control over the development process.
A real-world example of this in action is the 17,000 affordable homes across England and Wales that were not built, simply because HAs weren’t bidding on them, according to the HBF.
“Financial constraints are partly to blame, but this isn’t the full story…social landlords often declined homes due to concerns around tenure mix, location and delivery timings,” the foreword of the report, written by Vicky Savage, executive group director, development and sales, at L&Q, said.
The report outlines its principles under five key themes: pre-planning and scheme requirements, design and construction standards, land, planning, and legal framework, handover and post-completion responsibilities, and operational management and maintenance.
The G15 report has received endorsements from the Chartered Institute of Housing and the National Housing Federation, with additional support from Homes England and the Greater London Authority.
What the Experts Have to Say
Fiona Fletcher-Smith, chair of G15 and chief executive of L&Q, said: “With over a million people on housing waiting lists, we urgently need more homes. This report sets out how private housebuilders and the affordable housing sector can work together to create places which truly enable people to live better lives.”
Rachael Williamson, interim director of policy, communications, and external affairs at the Chartered Institute of Housing, said: “This guidance reinforces the need for collaboration and provides a practical framework to align development decision-making, on timing, tenure, quality, and designs of new homes, with meeting tenants’ needs.”
A spokesperson for Homes England said: “For it [section 106] to continue to be an effective delivery route and meet local housing need, it’s clear that there needs to be close collaboration, early engagement and strong partnerships between housing associations, local authorities and housebuilders.”
Sarah Finnegan, head of policy at the National Housing Federation, said: “By collaborating at the pre-planning stage, any concerns about the quality and design of these properties can be addressed from the outset, and together developers and social landlords can get on with the vital task of delivering more social homes.”
Tom Copley, deputy mayor of London for housing and residential development, said: “It is vital that developers and housing associations work together to make the Section 106 process work, and this report provides an important opportunity for further collaboration.
