Key steps in the roadmap
1. New national policy to positively support Local Planning Authorities (LPAs) in exercising their powers to vary affordable housing obligations in existing Section 106 agreements where developers have exhausted all reasonable endeavors to find a Registered Provider buyer (RP) so that tenures of affordable homes on sites can be varied to secure buyers. There are various conditions, however, including that the roadmap applies to homes due for completion before 1 December 2027 but uploaded onto the Homes England Clearing Service by 1 June 2026.
2. Supporting local planning authorities to negotiate Section 106 Agreements through proposals in the draft National Planning Policy Framework currently under consultation to 10 March 2026. These proposals include a requirement for local plans to clearly set out expectations for developer contributions and provide more clarification on viability assessments in planning applications. There is also intention to publish a template Section 106 agreement for sites below 50 homes, with sector-wide training opportunities to support LPAs.
3. Setting clear sector expectations to foster early engagement and collaboration between RPs, developers, and LPAs. This will provide clarity on the standards Section 106 homes must meet. Guidance will be issued separately to establish an agreed framework for how the sector will work together, including earlier engagement on design and build, and standardisation of pricing negotiations.
4. Expanding financial capacity to revive the market through various measures including the availability of low-interest loans to private RPs of social housing via the new National Housing Bank (or Greater London Authority, in London). Up to 10% of the £2.5 billion loan scheme will be available to support Section 106 delivery. Councils may also use their Right to Buy receipts to purchase Section 106 homes directly, and the Government is exploring the creation of consortia arrangements to enable RPs to pool their capacity and purchasing power.
Looking forward
An update to this policy statement is expected in spring 2026 which should include further details on implementation and reform. There is also the ongoing consultation on the draft NPPF, open until 10 March 2026. Section 106 delivery will be tracked more closely in the coming months through monitoring the Homes England Clearing Service and collecting additional data through the Social and Affordable Housing Programme bidding process.
The Planning team here at DMH Stallard are highly experienced in drafting and negotiating Section 106 agreements, acting for both LPAs and developers, and are available to assist with the renegotiation of Section 106 Agreements and advise on Affordable Housing obligations generally.
