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Sector warns government against axing Section 106 in planning overhaul
Removing or replacing Section 106 requirements as part of the government’s forthcoming planning overhaul will be difficult and could slow the supply of new affordable homes, housing and planning figures have warned.
Housing secretary Robert Jenrick outlined plans at the weekend for major reforms of the planning system, which he said will result in automatic permission to build in some areas and “permission in principle” in others.
The announcement has sparked scepticism from the housing sector, particularly surrounding what it will mean for the delivery of social and affordable homes.
Hugh Ellis, policy director at the Town and Country Planning Association, told Inside Housing: “Section 106 will have to go under the regime because of permission in principle.”
Section 106 refers to part of the planning process in which developers agree to provide community benefits such as affordable housing as a condition of their permission to build.
Half of all new affordable home built in England in 2018/19 were delivered through Section 106 agreements.
Mr Ellis added: “You would have to be very reckless to rip up the Section 106 regime, which is delivering the majority of the country’s affordable homes, unless you’ve got a very detailed alternative ready to go.
“Section 106 is all we have got – rip it up and you will deliver no affordable housing.”
Writing in the The Sunday Telegraph, Mr Jenrick said that land will be designated in one of three categories: growth, protection and renewal, the latter of which will be given “permission in principle”.
The newspaper also reported that development corporations will be set up which would be able to buy land, grant planning permission and sell land to developers at a profit which would then be used to fund infrastructure.
Ministers are due to publish a planning white paper setting out the details of the proposals later this week.
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Kate Wareing, chief executive of housing association Soha said: “Section 106 is certainly our main way of building affordable housing.
“My anxiety about the narrative around presumptions in favour of development is about how that supply is going to continue to come through communities.”
Mike Kiely, chair of the Planning Officers Society, said: “Development corporations can work, but the notion that it is nice and simple and easy is a little bit of a political soundbite.
“Human rights legislation means people are entitled to certain values for their land, that would need to be amended and it would require a departure from new planning and compulsory purchase legislation.”
In his column, Mr Jenrick insisted the government’s new system will cut “red tape” but not standards.
Ms Wareing added: “I’m alarmed if the existing mechanisms are being described as red tape when they are the main vehicle through which the majority of affordable homes are being delivered.”
In a separate statement provided to Inside Housing, Mr Jenrick said: “For too long homeownership has remained out of reach for too many, as a complex and outdated planning system has failed to keep up with the needs of our country.
“I am completely overhauling the system so we can build more good-quality, attractive and affordable homes faster – and more young families can finally have the key to their own home.”
