Nearly 300 organisations from across England have signed up to Homes England’s new Section 106 affordable housing clearing service to help unlock delivery of homes.
More than 70 housebuilders have registered to provide details of the affordable homes they have planning permission to build, alongside private homes, but have been unable to find a buyer for.
They join 140 registered providers and more than 70 local authorities who have already registered for the service as potential buyers.
Homes England, which created and manages the clearing service, hopes it will help to accelerate the sale of uncontracted and unsold affordable homes across England, excluding London.
Ian Workman, chief customer officer at Homes England, said: “This is a relatively simple but potentially impactful service that means greater visibility of opportunities to get affordable homes sold and occupied. I would urge housebuilders in particular to register and add as much detail as they can. Almost 200 registered providers and local authorities have already signed up, and 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 added: “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.”
Adam Hug, LGA housing spokesperson said: “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.”
Kate Henderson, chief executive of the National Housing Federation, added: “This clearing service is a welcome tool in tackling the current issue in the delivery of Section 106 affordable homes. Building new relationships between developers and social housing providers is important in overcoming the immediate challenges, as well as helping developers to understand the requirements of housing associations in the future.
“Housing associations are facing significant competing financial pressures, which is also impacting their ability to both buy Section 106 homes and build other new affordable homes. In the longer term, housing associations are committed to working in partnership with the government on a long-term housing strategy to rebuild their capacity and deliver more much needed social and affordable homes.”
