Section 106 service does not address HA capacity – HBF

Homes England’s Section 106 clearing service is welcome but does not address the lack of financial capacity in the housing association sector, according to the Home Builders Federation.

The government’s housing and regeneration agency launched its Section 106 Affordable Housing Clearing Service on December 12 – a database which connects housebuilders with housing associations to address the problem of uncontracted and unsold affordable homes across England.

Through the clearing service, housebuilders can give details of affordable homes they have planning permission to build but have been unable to find a buyer for. Housing associations (HAs) and local authorities (LAs) can view this information on the database. Housebuilders, HAs and LAs must register to use the service.

David O’Leary, executive director of the HBF, said that while the launch of the clearing service was “welcome recognition” by government of the problems within the section 106 market, with smaller firms potentially benefitting from being connected to regional housing associations, “the fundamental problems are not inadequate information or communication but a lack of housing association capacity or appetite to invest, leaving developers with legal obligations they are simply unable to discharge and new homes unbuilt”.

O’Leary noted that …