Planning Reform And Affordable Housing Delivery

Kate Henderson, Chief Executive of the National Housing Federation, has warned that proposed changes to Section 106 requirements in the revised National Planning Policy Framework (NPPF) could significantly reduce the delivery of affordable housing.

The Government is consulting on proposals that would remove the requirement for developers to deliver affordable housing on medium-sized sites (10–49 homes). NHF analysis shows that 12% of Section 106 affordable housing acquisitions nationally over the past three years came from these sites, rising to 26% for small and medium housing associations. Almost 10,000 affordable homes delivered during this period would not have been built without these requirements.

Kate Henderson highlighted that these homes are “a lifeline for local delivery and for keeping smaller providers active and viable in their communities, especially in rural areas.”

She also raised concerns that replacing on-site delivery with cash contributions rarely results in new affordable homes, noting that many local authorities lack the capacity, land or funding to bring forward alternative schemes.

The NHF argues that cash-in-lieu must remain the exception, not the rule, warning that weakening Section 106 risks losing a vital pipeline of affordable homes that many rural communities depend on.

Kerry Booth, Chief Executive Officer, Rural Services Network: Planning policy must work for rural places. If we are serious about supporting every person, in every place, we need to deliver the right homes, in the right places, with the right infrastructure. Weakening Section 106 risks undermining the developments that enable villages and small towns to meet genuine local housing need.