Standardisinginfrastructure agreements and employing more planning officerswould speed updelivery of thousands of housing projects currently delayed, claims the Homebuilders Federation, HBF.
A freedom of information request showed theaverage time to finalise S106 agreements,where developers contribute to new roads, affordable housing and schools, has increased by 20 per cent. In 2022-3 the average time was 425 days compared with 515 days in 2024-25 – adding 16months to the planning process.
HBF chief executive Neil Jefferson said: “While these delays affect developments of all sizes, they are particularly challenging for smalland medium-sized, SME developers, who often lack the financial reserves to absorb prolonged delays and rising costs.”
More than three-quarters of local authorities reported average negotiation timescales exceeding a year. Earlier HBF research revealed North Devon’s planning department was only 53 per cent staffed with nearly half of all S106 agreements taking over three years to approve. Other under-resourced planning authorities include Exeter and Stevenage where the majority of S106 agreements took more than a year to finalise.
“We need to see meaningful action to increase capacity at a scale commensurate with the importance of the challenge,” said Mr Jefferson.
Thousands more planning officers needed
The HBF is calling for an additional 2,200 planning officers across England and Wales to close the staffing gap. This is nearly eight times the government’s proposed recruitment of 300 new local authority planners, which the HBF says would account for less than 15 per cent of the current shortfall.
HBF also wants standardised procedural guidelines and clauses to reduce the need to draft S106 agreements from scratch. At the very least it is calling for clearer guidance and expectations on good practice for drawing up agreements.
Brokers Hank Zarihs Associates said development finance lenders were keen to see a systemised approach that would build trust among stakeholders and help developers better plan and budget projects.
HBF had said statutory or guideline-based timescales should be introduced into the application and pre-application handling for S106 negotiations, drafting and signing of agreements.
It wants local authority performance to be benchmarked with data on average timescales, agreement outcomes and compliance rates published in infrastructure funding statements.
The housebuilding industry contributes about £7bn annually to local communities through S106 agreementsproviding affordable housing and supporting local economies, enhancing local education services and community facilities.
LinkedIn Question: How can the average time for agreeing S106 agreements be speeded up?
