The flex will be welcome news for some particularly stranded developers, but they will need to move fast.
MHCLG has published Policy statement: a roadmap for Section 106 delivery in England (28 January 2026).
The most eye-catching aspect is a “time-limited, emergency measure intended to support LPAs to exercise their ability to renegotiate planning obligations.” (Perhaps I would have preferred “strongly encourage” rather than “support”!).
Here’s what you need to know, by way of direct quotes from the document:
“LPAs are expected to consider re-negotiating S106 agreements when the following conditions are met:
- Developers should have exhausted all reasonable endeavours to find an RP buyer based on the affordable housing marketing, and any other – relevant requirements set out in the original S106 agreement.
- Developers should have uploaded any uncontracted S106 homes onto the Homes England Clearing Service by 1 June 2026 to give a final opportunity for RPs to bid to purchase these homes. Any homes not uploaded onto the Clearing Service by this point will be outside of this process.
- Homes should be live on the Clearing Service for a period of six weeks from the date of the unit being uploaded (“the Clearing Service period”).
- The S106 homes should be due for completion on or before 1 December 2027, to be eligible for this time-limited approach; completion defined as when a home is ready for occupation or when a completion certificate is issued. Expected completion dates should be registered on the Clearing Service to guide LPAs on whether all above conditions are met.
- LPAs should seek to avoid tenure renegotiations for uncontracted s106 homes that have received reasonable offers from willing and suitable RP buyers, as is current practice, to avoid the loss of social and affordable housing to private sale.
- As is currently expected, developers should inform LPAs of any, and all, bids they receive from RPs seeking to buy uncontracted S106 units. LPAs are actively encouraged to request that these details are provided.
- Assessing the reasonableness of bids is ultimately a matter for individual LPAs but, where available, they are encouraged to consider the following evidential sources: site level viability evidence; published commuted sums policies; grant rates; surveyor data; and recent S106 purchases in the locality.
- Given the Clearing Service will have provided an opportunity for RPs to identify and bid for unsold and uncontracted S106 units, LPAs are encouraged for this temporary period to take a pragmatic, time-limited, and light-touch approach to assessing bids, and any further information requests, for example evidence of marketing efforts or details of contact with prospective buyers in the locality.
In instances where there is a dispute between the LPA and developer over whether bids received are reasonable, they may also wish to seek a third-party view to support a resolution, as per an existing Alternative Dispute Resolution (“ADR”) procedure.”
“LPAs should confirm their decision on proceeding to re-negotiate the S106 agreement as quickly as possible – with a guideline of no more than twelve weeks from the end of the six week period, and consider the following in negotiating to alter the tenure of eligible homes:
- LPAs are encouraged to take the following approach:
- seek alternative affordable housing or discounted market tenures in the first instance where possible;
- if there is no buyer for such tenures, proceed through to private market rent or sale (with equivalent form of affordable housing provided on an alternative site within the LPAs’ area or, where this is not feasible, a financial payment made in lieu of onsite affordable housing).
- LPAs should include stipulations that make clear that if homes are not completed on time and by the deadline of 1 December 2027, schemes will revert to the tenure mix set out in the original S106 agreement. Renegotiated S106 agreements should provide for this without the need for a further deed of variation to be made.
- When considering phased development, LPAs and developers should agree a tailored approach with regard to the circumstances of the specific phases i.e. if the first phase will be completed by 1 December 2027, then a deed of variation should be considered in line with the policy set out in this statement. However, where phases contain units that are not expected to complete by this point, the terms set out in the original s106 should continue to be expected to apply.”
If you are a developer unable to find a registered provider to take on homes which are capable of completion by 1 December 2027, this should provide a helpful intervention. Of course, the encouragement to local planning authorities has no real teeth in the face of opposition or delayed responses but one would hope that this government “emergency” announcement (backed indeed by a written ministerial statement) should carry significant practical weight.
What else was in (on?) this “roadmap”?
The second section sets out how MHCLG intends to “simplify and strengthen the process for agreeing developer contributions through S106 agreements at the application stage of new developments”. The approaches to be taken to viability appraisal at the plan-making and decision-making stage as set out in the proposed new NPPF, together with “good quality pre-application engagement between applicants and LPAs to identify and resolve key matters, including planning obligations for the development…will enable the head of terms for the S106 agreement to be agreed as quickly as possible once the application has been submitted”.
Thank you for all those who have engaged to date in my firm’s mini campaign (started by my 14 June 2025 blog post Why Does Negotiating Section 106 Agreements Have To Be Such A Drag?) to secure a standardised form of section 106 agreement for use with smaller schemes:
“Today, we are also confirming our intention to publish a standardised template S106 agreement to help speed up the process of drafting and agreeing new S106 agreements. Town Legal LLP have been formally awarded the contract following a successful procurement process conducted by the Planning Advisory Service. It is intended that a standardised S106 template for medium sites will be issued as a first priority. The template will set out the foundational elements and clauses expected in the majority of S106 agreements for sites below 50 units, and we will engage widely with all relevant parts of the sector to ensure it is as effective as possible. This will provide LPAs a solid starting point for new agreements, speeding up the drafting process and freeing up capacity. Sector-wide training opportunities will also be provided to authorities as part of this wider package.”
So, watch this space!
The third section promises guidance to set out clearer expectations for registered providers, developers and local planning authorities as to the standards that section 106 homes should meet; how the different elements of the sector should work together; standardisation as to pricing, and making the process more accessible for small housing providers.
The final section sets out measures the government is taking to strengthen and expand the market for affordable housing secured by section 106 agreements, including (although I’m straying a bit from my pigeonhole here): low-interest loans for private registered providers of affordable housing [£2.5bn over four years; 60% to be allocated to London; interest rate of 0.1% and a duration of 25 years; competitive bidding process; up to 10% for section 106 homes]; allowing councils to use “right to buy” receipts; exploring “bringing RPs together as consortia to be able to bid and purchase S106 homes together, pooling their capacity and purchasing power. This will be alongside leveraging the role of Established Mayoral Strategic Authorities more proactively in the S106 market” ; also exploring “how government can crowd in additional private investment to enable the purchase of unsold S106. This is with the aim of bringing them into use while retaining them as regulated affordable housing, for example through an affordable housing acquisition vehicle supported by debt guarantees which is able to buy Section 106 homes”, and adding military affordable housing to the definition of affordable housing.
All of this is alongside Matthew Pennycook’s separate written ministerial statement updating on progress in relation to its social and affordable housing renewal plan. I assume that registered providers will have welcomed the detail provided as to the convergence mechanism now arrived at by the government to enable registered providers to start to close the gap between the rents that could be charged if the home were let to a new tenant and what is payable by the existing tenant:
“Following consultation, I am today confirming that Registered Providers will be able to increase weekly rents for Social Rent homes that are below formula by up to an additional £1 on weekly rents each year over and above CPI+1% from 1 April 2027, and by up to an additional £2 on weekly rents each year over and above CPI+1% from 1 April 2028, until formula rent is reached.”
The statement also confirms details of a reformed Decent Homes Standard for social and privately rented homes.
On the following day, 29 January 2026, MHCLG announced a second phase of its “new homes accelerator” programme. The programme has now been expanded to include sites of fewer than 500 homes. “As part of Phase 2, operations will be expanded in London through the launch of ‘NHA LDN’ and a new planning support service for boroughs, ‘ATLAS LDN’, which will both be led by the Greater London Authority (GLA) on behalf of the Mayor of London.” If your scheme needs support in unblocking issues, for instance, in working with statutory consultees, there is a portal to apply for schemes nationally and a separate one for London.
It wasn’t all announcements coming from MHCLG this week. MHCLG also published two rather elderly but unfortunately still topical pieces of research that had been commissioned by the previous government and which then had presumably disappeared down the back of a Marsham Street sofa:
- Delays and barriers experienced in the planning applications process (June 2022), a study by RSM, looking “at the planning applications process following an extensive assessment of 80 case studies for both minor and major development. In doing so, the research explored the different stages of the applications process, from pre-application to post-decision matters, highlighting where the most common and impactful delays occurred”.
- Previous Housing Market Downturns: A rapid review and analysis of English housing market downturns and government responses, 1970 to 2023 (March 2023), a report by Christine Whithead and Peter Williams.
The Reflex – Flex – Flex – Flex – Flex …
Simon Ricketts, 30 January 2026
Personal views, et cetera



