Thousands of affordable and social homes across England are sitting unbuilt or unused, not because of planning delays, but because developers cannot secure a Registered Provider (RP) to take them on. With S.106 obligations forming a major pipeline for affordable housing delivery, this blockage has become a national concern. In response, the government has issued new emergency guidance aimed at unfreezing these stalled homes by encouraging Local Planning Authorities (LPAs) to renegotiate S.106 agreements where appropriate.
Why Are S.106 Homes Stuck?
S.106 agreements are a cornerstone of affordable housing delivery, requiring developers to provide social or affordable units as part of planning consent. Typically, these homes are transferred to RPs, who then manage and allocate them. However, in recent years many RPs have reduced their appetite for S.106 acquisitions due to:
- Rising construction costs
- Financial pressures and regulatory constraints
- Concerns about long‑term viability
- Increased risk exposure
As a result, developers are left with completed or consented affordable units that cannot be sold to an RP, leaving homes empty, delayed, or financially unviable. LPAs already have discretion to amend S.106 requirements, but in practice renegotiations are often slow, inconsistent, or unsuccessful.
The Government’s Emergency Intervention
On 28 January 2026, the government published ‘A Roadmap for Section 106 Delivery in England’, setting out a clear expectation: LPAs should renegotiate S.106 agreements where developers can demonstrate that they have taken reasonable steps to secure a registered provider but have been unable to do so.
The aim is simple – unlock homes that would otherwise remain stuck.
What Developers Must Demonstrate
To qualify for a renegotiation, developers must evidence that they have:
- Used all reasonable endeavours to find a RP, following the marketing and procedural requirements in the original S.106 agreement.
- Listed the uncontracted S.106 homes on the Homes England Clearing Service by 1 June 2026 and for a minimum of six weeks.
- Ensured the homes are due for completion by 1 December 2027.
If these conditions are met and no suitable RP has come forward, LPAs are expected to consider varying the tenure mix.
When LPAs Should Not Agree to Changes
The guidance is clear that renegotiation is not appropriate where a “willing and suitable” RP has made a reasonable offer. What counts as reasonable is left to the LPA’s judgment, though the government encourages the use of alternative dispute resolution where disagreements arise.
What Tenure Changes Are Encouraged?
If an LPA agrees to vary the S.106 agreement, the government expects a hierarchy of alternatives:
- First preference: Other forms of affordable or discounted tenure
- Only if that is not possible: Conversion to private market sale or private rent
This approach aims to preserve as much affordable housing value as possible while still enabling stalled sites to progress.
Key Conditions for Any S.106 Variation
Any approved variation must include the following safeguards:
- Reversion clause: If the homes are not completed by 1 December 2027, the tenure mix automatically reverts to the original S.106 requirements.
- Phased developments: For multi‑phase schemes, the original S.106 terms apply to any phase containing units not completed by the same deadline.
These conditions are designed to prevent misuse of the flexibility and ensure timely delivery.
What This Means for Developers and LPA’s
This emergency guidance represents a significant shift in how the government expects S.106 obligations to be managed during a period of market instability. Ultimately, the goal is to prevent thousands of much‑needed homes from remaining in limbo.