Guidance drawn up by housebuilders, councils and housing associations aims to make process for affordable home acquisitions smoother

The government has endorsed new guidance developed by housing sector bodies designed to make the section 106 process smoother.

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Leaders from across the housing sector have come together in support of the new guidance (clockwise from top left) Kate Henderson, chief executive of NHF; Neil Jefferson, chief executive of HBF; Liam Robinson chair of the LGA’s inclusive growth committee and Gavin Smart, chief executive, CIH.

The new voluntary advice, titled ‘National S106 Affordable Housing Engagement Guidance’, has been developed by the National Housing Federation (NHF), the Home Builders Federation (HBF), the Local Government Association (LGA) and the Chartered Institute of Housing (CIH) working together in collaboration. The Ministry of Housing, Communities and Local Government (MHCLG) released the guidance last week.

The guidance outlines shared principles and includes a “statement of collaboration”, signed by all four sector bodies (see below) including a commitment to “engage early in the land, planning and design process”.

The guidance suggests key topics of discussion between partners, grouped into different stages of the process. These include ‘pre-planning and scheme requirements’, ’design and specification’ ‘construction’, ‘handover’ and ‘maintenance’.

Affordable homes provided as a condition of planning approval through section 106 agreements typically make up more than 40 per cent of affordable housing delivery in England. However in recent years appetite from housing associations to forward-buy the homes from private housebuilders has fallen amid increased costs, competing priorities and concern about design specifications and quality. Many registered providers are shifting more towards a “land-led” model of development where they buy the land themselves rather than forward-buy homes from a housebuilder.

The statement of collaboration

  • We will work collaboratively as home builders, local authorities, registered providers and sector representatives.
  • We will engage early in the land, planning and design process, act with clear intention to follow through on our commitments, and maintain open, constructive communication throughout the entire delivery journey and aftercare.
  • Together, we will deliver homes and places that meet local needs and that residents can take pride in: well-designed and built to recognised quality standards, managed with accountability and integrity, and maintained to ensure they remain sustainable and resilient for the long term.

Endorsed by the NHF, LGA, HBF and CIH. Click here for the guidance,

An MHCLG spokesperson said: “This guidance represents a shared commitment by home builders, local authorities and housing associations to work together to deliver social and affordable homes through early engagement, transparency and collaboration across the section 106 process.”

The guidance follows a period of debate in the social housing sector about how best to improve the section 106 system. Homes England in 2024 launched a ‘clearing service’ aiming to pair prospective buyers and sellers of homes.

This year’s State of the Capital report, published by Housing Today and the G15, proposed housing developers be mandated to involve housing associations early in section 106 negotiations. Fiona Fletcher-Smith, chief executive of L&Q in a webinar discussing the findings last month said: “The majority of house builders will want to engage with this. But for those who don’t understand the importance of it, a bit of mandating is always useful.”

MHCLG also last week published a consultation paper on four standard s106 templates for sites of between 10 to 49 units.

Kate Henderson, chief executive at the NHF said: National Housing Federation, said: “We’re confident that with this guidance, alongside wider reforms to the system, S106 will continue to play a crucial role in delivering truly affordable homes for our communities.”

Gavin Smart, chief executive at the CIH, said: “This requires the commitment from everyone in the housing sector to work in a timely, collaborative and effective way. We will continue to work with our members to deliver these homes, and ensure everyone has a place to call home.”

Neil Jefferson, chief executive at the HBF said: “Section 106 agreements are a vital source of much-needed affordable housing, supporting the provision of mixed tenure developments and helping to speed up the delivery of new homes of all types. For some time the market for Section 106 homes has been challenged.”

Liam Robinson, chair of the LGA’s inclusive growth committee, said: “This co-designed guidance is a positive step to ensuring consistent outcomes through Section 106.”

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