New clearing service for Section 106 affordable homes
A new register has been set up with the aim of accelerating the sale of unsold affordable homes
Nearly 300 organisations from across England have signed up to the new Section 106 Affordable Housing Clearing Service.
The new service allows sellers to provide details of affordable homes they have planning permission to build, alongside private homes, but have been unable to find a buyer for. And, it allows buyers to view available information about potential opportunities on a regular basis.
A Section 106 agreement is a planning obligation that requires developers to contribute to local infrastructure and community facilities, such as affordable housing, schools, parks, or transport improvements, as a condition of planning permission.
It is hoped the new registry of homes built as part of S106 agreements will help facilitate and accelerate the sale of uncontracted and unsold affordable homes across England, excluding London.
More than 70 house builders have registered their details to the clearing service, joining 140 Registered Providers (RPs) and more than 70 Local Authorities (LAs) who have already registered as potential buyers.
“This is a relatively simple but potentially impactful service that means greater visibility of opportunities to get affordable homes sold and occupied, said Ian Workman, the Chief Customer Officer for Homes England.
“I would urge house builders in particular to register and add as much detail as they can. Over 200 registered providers and local authorities have already signed up, and are regularly checking for potential opportunities to acquire homes for the communities they serve.
“Listening, acting and working hand-in-glove with partners is fundamental if we are to move forward and find solutions together to the challenges the sector is facing. I am grateful to all those who have helped to shape this service so far, with promising early signs of uptake.”
Housing Minister, Matthew Pennycook, said: “We recognise the challenge posed by the reduced appetite of registered providers of social housing to buy affordable homes delivered under section 106 agreements.
“The new clearing service we have worked in partnership with Homes England to establish will help improve the functioning of the market and unblock the delivery of section 106 affordable housing.
“Hundreds of developers and providers have already come forward to engage with this new service and real progress is being made as a result.”
Cllr Adam Hug, LGA housing spokesperson, added: “Councils urgently want to deliver more affordable housing including those affordable homes agreed in Section 106 agreements with developers in local planning applications.
“This service is a positive step to promoting stalled sites to registered providers of affordable housing, and the LGA encourages all local authorities to engage with it. But it is just one tool which will help bring forward more affordable housing. Much more needs to be done.”