Policy for Section 106 delivery

The Government has published a policy paper on providing a time-limited, simple, more transparent and more resilient S106 system.

It is intended to give greater clarity on standards S106 units must meet in a way that works for Registered Providers (RP), as thousands of constructed or consented affordable homes are currently uncontracted and unsold.

There are conditions and guidance in the paper for LPAs to renegotiate S106 agreements and allow the tenure of homes to be varied in order to secure a buyer.

Further updates are expected in Spring 2026. New guidance will set proportionate standards, encourage early RP engagement, standardise pricing, and support smaller providers. Financial measures include low‑interest loans, expanded RP capacity, and improved use of Right T0 Buy receipts.