NHF says 32,000 affordable homes could be lost as a result of proposed section 106 flexibility on small sites
Summary
The National Housing Federation has warned that proposed flexibility on section 106 obligations for small sites could result in around 32,000 affordable homes being lost. The concern is that allowing developers to pay cash in lieu of on-site provision may reduce affordable housing delivery, particularly in rural areas.
Why it matters
Section 106 policy affects the mix and viability of new housing schemes, which can influence site appraisals, planning obligations and local supply. Surveyors involved in development, valuation and planning advice should note the potential impact on affordable housing delivery and rural schemes.
Key points
- Government is considering cash-in-lieu payments instead of on-site affordable housing on small sites.
- The National Housing Federation says this could reduce affordable housing delivery by about 32,000 homes.
- Rural areas are expected to be disproportionately affected.
- The issue relates to section 106 planning obligations and development viability.
Organisations:
National Housing Federation, Government
Regulations:
section 106
Locations:
rural areas
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