New report by London housing association group is latest attempt to tackle section 106 slowdown
The G15 has published a guide to help housebuilders more easily secure section 106 deals with housing associations.
The group, which represents London’s largest housing associations, described its report ‘Building Together, Building Better: Rethinking S106 for Affordable Housing Delivery’, as a “practical framework for developers wanting to work with affordable housing providers.”
The report, authored by L&Q in collaboration with the G15 development directors’ group, sets out 24 principles and standards for future section 106 homes to help housebuilders meet the needs of housing associations.
The guidance says affordable housing providers should be involved in decisions about new projects from early stages, ideally at the pre-planning or land acquisition stage. The G15 believes this enables the design of places which genuinely meet the long-term needs of all residents.
The G15 also stresses the importance of ongoing collaboration and transparency, through regular meetings, shared decision-making about specifications and components and site visits to monitor the delivery of homes.
Section 106 homes – affordable homes purchased off housebuilders which are required in schemes as part of planning - in 2023/24 accounted for around four in 10 affordable homes delivered in England.
However recently there has been a reduction in appetite for buying these homes, with many housing associations shifting towards ‘land-led schemes’ – where the housing association owns or purchases the land - in a bid to ensure greater control over the developments.
In December 2024, the Home Builders Federation reported more than 17,000 affordable homes in England and Wales were not being built because housing associations were not bidding for them.
“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’s principles are grouped into five themes; pre-planning and scheme requirements; design and construction standards; land, planning and legal framework; handover/post-completion obligations and operational management and maintenance.
The G15 report has been endorsed by the Chartered Institute of Housing and the National Housing Federation and supported by Homes England and the Greater London Authority.
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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 I [section 106] t 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 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. The mayor and I will continue to work closely with our partners across the sector to boost affordable housing delivery and create a better, fairer London for everyone.”
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