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Tim Foreman, Managing Director of Land and New Homes at LRG asks why the slowdown in Section 106 delivery has become a wider question about viability, timing and whether the planning system is asking more of some schemes than they can now bear...
Historically, affordable housing’s position in the development process has been that of one important component among many. But that appears to be changing: on a growing number of schemes, affordable housing has become one of the factors determining whether a site proceeds, slows or stops. That is not because affordable housing
has become less necessary, quite the reverse. Need is indisputable: waiting lists in London borough have reached 336,366 households (London Councils
registers stand at 1.34 million (MHCLG: And yet, according to the London Assembly’s Affordable Housing Monitor 2025, London added just 7,674 affordable homes in 2023-24 against an estimated annual need of 42,841. Section 106 has become a wider development problem Section 106 affordable housing is usually built into the funding and
delivery structure of a scheme. If the affordable homes are not taken is affected, phasing changes, debt exposure increases and the wider scheme can slow dramatically or stop altogether. The HBF’s State of Play 2025/26 report states that around 8,500 Section 106 units due within twelve months were not under contract with a Registered Provider, about 900 completed homes were unsold for the same reason, and more than 700 sites
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