Homes England launches section 106 ‘clearing service’ to help tackle affordable housing slowdown

Homes England has launched a database to help match buyers and sellers of section 106 affordable homes, as concerns grow over a slowdown in bidding from registered providers.

The new ‘clearing service’ allows housebuilders to provide details of affordable homes they have planning permission for but have not been able to find a buyer for. Housing associations and councils can register to view the information.

A Homes England spokesperson said: “This means greater visibility of opportunities, all in one place, for buyers and sellers to connect, build new partnerships and work together to get affordable homes sold and occupied.”

The new database, which is now open for entries, is launched as concern mounts in the sector about a reduced appetite among housing associations to bid for section 106 affordable homes.

The Home Builders Federation yesterday published research showing more than 17,000 affordable homes with detailed planning permission are stalled due to a lack of registered providers in the market to buy the homes.

Under section 106, housebuilders are required to ensure a percentage of homes in a development are for affordable tenures as a condition of planning permission.

Housing associations typically forward buy the affordable units off housebuilders to manage for the long-term. Around four in 10 affordable homes were delivered through section 106 deals in 2023/24

But many housing associations across the country are shifting away from section 106 deals towards doing their own ‘land-led’ schemes.

Associations are facing rising costs, including building safety remediation work and reduced balance sheet capacity, meaning many large providers are preferring to concentrate on their own sites where they can deliver larger numbers of affordable homes, while retaining more control over design and quality.

Homes England said the clearing service, which will provide information about schemes across England outside London, will be refined over the coming months according to user feedback. Social landlords and housebuilders can register to access the service here.