As of January 2025, nearly 300 organizations across England have registered for the Section 106 Affordable Housing Clearing Service, a new initiative launched by Homes England to facilitate the sale of uncontracted affordable homes.
This service aims to bridge the gap between developers struggling to sell these homes and registered providers (RPs) and local authorities (LAs) seeking to purchase them. The initiative excludes Greater London, where the Greater London Authority oversees affordable housing.
Section 106 Affordable Housing
The Section 106 Affordable Housing Clearing Service was created in response to the challenges developers face in selling affordable homes built under Section 106 agreements. These agreements require developers to include a certain percentage of affordable housing in new developments.
However, due to economic pressures and policy changes, RPs have reduced their purchases, leaving many homes unsold. The clearing service provides a platform for developers to list available homes and for RPs and LAs to find and purchase them, streamlining the process and improving market efficiency.
Implications and Outcomes
The service has seen significant uptake, with over 70 housebuilders and more than 140 RPs and 70 LAs registering. This level of engagement is crucial for the service’s success, as it relies on active participation from both sellers and buyers.
The goal is to accelerate the sale of these homes, thereby supporting the delivery of affordable housing across England. However, the long-term success of the service will depend on sustained engagement and the ability to address underlying economic challenges facing RPs.
Statistics on Section 106 Affordable Housing
Category | Number | Percentage |
---|---|---|
Registered Organizations | 300 | N/A |
Housebuilders Registered | 70+ | N/A |
RPs and LAs Registered | 210+ | N/A |
Uncontracted S106 Units | 17,432 | 63% of 2023-24 total |
Delayed Sites | 139 | N/A |
Private Sector Contribution | 44% | Of new affordable homes |
Additional Analysis
One of the critical aspects of the clearing service is its potential to unlock stalled sites and accelerate housing delivery. With nearly 140,000 affordable homes delivered through Section 106 agreements in the past five years, the service plays a vital role in maintaining this momentum.
However, it also raises questions about the sustainability of relying on private sector contributions for affordable housing. Can this model continue to support the government’s ambitious housing targets?
Expert Insights
Homes England Chief Customer Officer Ian Workman emphasizes the importance of detailed information from housebuilders to enhance the service’s effectiveness.
“This is a relatively simple but potentially impactful service that means greater visibility of opportunities to get affordable homes sold and occupied.” – Ian Workman, Chief Customer Officer at Homes England
Housing Minister Matthew Pennycook highlights the service as a solution to market challenges.
“The new clearing service… will help improve the functioning of the market and unblock the delivery of section 106 affordable housing.” – Matthew Pennycook, Housing Minister
Related Policies and Initiatives
- Affordable Homes Programme: Provides funding for affordable housing projects across England.
- Community Infrastructure Levy (CIL): A charge on new developments to support local infrastructure.
- Greater London Authority (GLA) Initiatives: Focuses on affordable housing strategies specific to London.
Forward-Looking Analysis
In the long term, the success of the clearing service will depend on its ability to adapt to changing economic conditions and policy shifts.
As the housing market continues to evolve, innovative solutions like this service will be crucial in ensuring that affordable housing remains a viable option for those in need.
The service also underscores the importance of collaboration between government agencies, developers, and housing providers in addressing the housing crisis.
Closing Thoughts
The Section 106 Affordable Housing Clearing Service represents a significant step forward in addressing the challenges faced by developers and RPs. As registrations near 300, it is clear that there is a strong appetite for such initiatives.
The key now is to ensure that this momentum translates into tangible results in the delivery of affordable housing.
Further Reading
- Register to Sell and Buy Section 106 Affordable Homes
- The Section 106 Affordable Housing Clearing Service
Did You Know?
Private sector developers have contributed to nearly 44% of all new affordable homes through Section 106 agreements, delivering almost 140,000 homes in the past five years.
What This Means for You
This service could significantly impact those seeking affordable housing by increasing the availability of such homes. For developers, it offers a platform to sell uncontracted units more efficiently, reducing delays in project completion.