Delays in the planning process are at a high, with Section 106 negotiations seeing a 20% rise in length
Homebuilder infrastructure agreements are highlighted as seeing serious delays in the latest Home Builders Federation report.
The statistics show that 76% of local authorities have reported an average negotiation time exceeding a year.
Section 106 agreements are vital to planning
These agreements set out the contributions that a developer must put towards supporting the local community around a development, including schools, roads, public spaces, and affordable housing.
In 2022/23, the average time waiting for Section 106 agreements to be finalised was 425 days, while now in 2024/25, it has increased to 515 days, creeping closer to the two year mark by 20%.
Furthermore, it was found that 35% of these agreements took more than 12 months to complete. The longest recorded wait time was 2,679 days, around seven years.
It is primarily small- and medium-sized enterprises (SMEs) that are affected by these delays, as they are more susceptible to the financial cost brought about by these delays.
More support for LPAs would shorten homebuilder infrastructure agreements
The key issue found in the research that is causing these delays is the capacity of local authorities. An estimated 80% of Local Planning Authorities (LPAs) are operating below full capacity, and there is still a need for 2,200 planning officers across England and Wales to fill the void.
The government announced an overhaul to the planning system at the end of last year, shortly followed by the announcement of funds for 300 extra planners for local councils, which the HBF applauds, however, they say that this would cover less than 15% of the current need left by understaffing.
The HBF are therefore calling for further increased support for LPAs and their staff, as nothing can change while numbers of staff remain low.
Neil Jefferson, chief executive at the Home Builders Federation, said: “The delays in negotiating Section 106 agreements are a clear example of how a lack of capacity in local authorities and inconsistencies in the planning process are affecting the delivery of much-needed homes. Home builders are proud of the contributions their developments make to local services and infrastructure and want these to be delivered in a timely fashion. With over £7 billion delivered through S106 agreements each year, we cannot afford for the system to keep failing.
“While Government has acknowledged the staffing constraints and taken welcome steps to address delays in the planning process, we now need to see meaningful action to increase capacity at a scale commensurate with the importance of the challenge.”
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