Anyone involved in housing delivery knows that negotiating and agreeing Section 106 has become one of the biggest drags on the system. It’s not because planning obligations are wrong in principle. Quite the opposite. Done well, they secure affordable housing, infrastructure and mitigation that make development acceptable and sustainable. The problem is the process.
I was pleased to host the recent launch of the Land, Planning and Development Federation’s work with Town Legal and Lord Banner KC on simplifying and standardising Section 106 agreements. Their report sets out a compelling case for reform, backed by hard evidence on delays. Data from the Home Builders’ Federation shows that average S106 timelines are now stretching well beyond a year, with some agreements taking several years to conclude. That’s time when homes that already have a resolution to approve are simply not being built.
There is a straightforward and sensible solution to addressing this delay. Introduce a national template for small and medium-sized schemes, reduce the endless re-drafting of boilerplate clauses and focus negotiations on what actually matters on a site; the local context and local need. A national template will deliver faster decisions and result in lower legal costs, improving viability, and removing friction from the process. For SME builders in particular, these delays can be the difference between a viable scheme and one that never gets delivered.
But we should be clear-eyed. Standardisation alone will not fix the problem.
I have seen first-hand how even well-designed standard documents can get picked apart in practice. We have been here before in the construction sector. NEC contracts were meant to simplify delivery and drive collaboration. PAS 91 was designed to streamline pre-qualification for public schemes. In both cases, lawyers across the system found ways to add caveats, amendments and bespoke wording until the standard became anything but.
There is no reason to think Section 106 will be immune from the same behaviour.
That is why Government has a critical role to play if this reform is to land properly. Guidance matters. The National Planning Policy Framework and Planning Practice Guidance needs to go further than warm words about engagement and efficiency. They should actively promote the use of standardised Section 106 templates, set clear expectations that deviation from agreed boilerplate should be the exception not the rule, and require local planning authorities to justify where and why they depart from national templates.
Centralising this element of planning will not strip councils of discretion. Local variation will always be needed and possible. But predictability, proportionality and pace are essential if we are serious about the delivery of 1.5 million homes. A standard starting point, backed by firm national guidance, gives councillors confidence, reduces risk for developers, and helps officers manage stretched workloads.
If our Secretary of State Steve Reed MP, and Housing Minister Matthew Pennycook MP are serious about building more homes, which I believe they are, especially through SME builders, then fixing the Section 106 process is essential. Simplifying and standardising is the right direction of travel. But without Government being explicit, consistent and firm in policy and guidance, the system will default back to complexity.
The opportunity is there. We should take it, and make sure it sticks.