This week on Property Quorum, we’re turning our attention to one of the biggest hold-ups in housing delivery right now - the growing crisis around Section 106 agreements. You may have spotted the recent Construction Enquirer piece revealing that more than 700 housing schemes across England are currently on ice, with an estimated 8,500 affordable homes at risk and around 900 already built but standing empty. That’s not just a housing statistic - that’s entire streets, waiting for residents who can’t move in.

So, what’s gone wrong? And before that - what is a Section 106 anyway?

It’s a question worth asking, because it’s one of those planning terms that everyone hears, yet few truly understand. In theory, Section 106 is a good thing - it’s the legal agreement that ensures developers contribute back to the community when new homes are built. It can require affordable housing, road improvements, play areas, school funding - the kind of local gains that make development fairer and more sustainable. It’s part of the delicate balance between private development and public benefit.

The problem, as this latest crisis shows, is what happens when that balance tips too far. According to the Home Builders Federation (HBF), many housing associations - the registered providers meant to take on the affordable homes - are pulling back. The numbers simply don’t stack up anymore. Rising build costs, high borrowing rates, and squeezed budgets mean they can’t commit to buying or managing these homes.

As a result, entire developments are stalling. Affordable homes are left uncontracted, sites are rephased, and even private sale units are delayed. Some developers say they’re stuck with completed properties they can’t hand over, while others are holding off starting the next phase until the affordable element is resolved. It’s a domino effect that’s hitting everyone - buyers, builders, and communities alike.

The HBF’s report calls this a “perfect storm” of economic pressure, rigid policy, and risk aversion. It’s easy to see why. The system assumes everyone in the chain will play their part, yet when one side falters, the whole process grinds to a halt. And with local authorities also struggling for resources, renegotiating or adapting these agreements isn’t always quick or simple.

That’s why, on Thursday’s episode, we’ll be asking if Section 106 is still fit for purpose in 2025. Should councils accept alternative payments to keep sites moving? Should developers be given more flexibility to change tenure types? Or do we risk watering down the very commitments that make planning obligations worthwhile?

Expect a grounded and practical discussion, with our regular team in the chair: Gareth Wax, Hamish McLay, Juliet Baboolal, Chris Gilsenan, and Wendy Gibson. Together, we’ll be looking at what Section 106 was meant to achieve, why it’s now under strain, and what needs to happen next to get homes built and lived in again.

Join us live on Thursday at 10am for Property Quorum: What’s a Section 106 Anyway? Affordable Homes Gridlock Explained.

Watch live or catch up later on our YouTube channel:
https://www.youtube.com/@SpillingTheProper-Tea

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