Lorraine Neve, Senior Associate in our Planning and Environment team, examines the government's consultation on standard section 106 agreements (s106) for medium-sized developments and considers what the proposed changes could mean for developers, local authorities, and housing providers.
The government has launched a consultation on proposed standard s106 agreements and affordable housing schedules for medium-sized developments. The changes aim to simplify negotiations, reduce delays, and provide greater certainty for medium-sized housing schemes of 10 to 49 homes.
The consultation seeks views on four draft templates:
- a bilateral s106 agreement, including standard clauses and schedules for financial contributions and local planning authority covenants;
- a unilateral undertaking, including standard clauses and a schedule for financial contributions;
- an Affordable Housing Schedule for full planning permissions, including a discretionary cascade mechanism; and
- an Affordable Housing Schedule for outline planning permissions.
- Early engagement on housing types, tenure mix and local housing need.
- Collaborative planning and design to ensure schemes are viable, affordable to manage, and meet regulatory standards.
- Clear agreements on delivery timescales, construction oversight, handover processes, and documentation.
- Effective aftercare and maintenance arrangements to support residents and avoid disputes after completion.
The consultation follows the government’s Policy Statement: a roadmap for Section 106 delivery in England, first published in January 2026 and later updated in March 2026. The roadmap outlines the government’s plans to explore a range of additional longer-term measures to help improve and speed up the s106 process.
The support for the use of templates is set out at DM6(4) of the new National Planning Policy Framework (NPPF), published on 17 August 2026, that states: “Where national model planning obligations are relevant to the development, they should be used unless there are strong reasons for using a different obligation”. The consultation confirms that this NPPF policy is not intended to apply to the cascade mechanism, the use of which will remain at the discretion of local authorities.
The consultation closes at 11:59 on 20 October 2026 and can be found here: Standard planning agreements for medium-sized sites.
Government consultation on the delivery of affordable housing
The government also published new guidance on 25 August 2026 to support the delivery of affordable housing through s106 agreements in England. The voluntary guidance is a best-practice guide developed by a cross-sector working group, aiming to improve collaboration between local authorities, housebuilders, and registered providers, helping to reduce delays and bring forward affordable homes more efficiently.
The guidance set out the affordable housing issues that need to be considered throughout the process from pre-planning to delivery and aftercare. It highlights the importance of:
The guidance will be adapted subject to how practices, outcomes and policy evolve. The guidance can be found here: National Section 106 Affordable Housing Engagement Guidance.
Focus remains on the delivery of new homes
The spotlight remains on improving the s106 process to support the delivery of new homes in line with the government's growth agenda. The use of templates has the potential to reduce negotiation time, create greater consistency, and provide more certainty for all parties involved. Alongside this, the new guidance is intended to encourage collaboration and ensure affordable housing considerations are at the forefront of the process and can addressed at an early stage.
With the NPPF placing greater emphasis on the use of template s106 agreements, the consultation provides an important opportunity for local authorities, SME developers, lenders, and housing associations to help shape the final approach and ensure it is effective in practice.
Thrings' Planning and Environment team advises developers, landowners, and local authorities on a wide range of planning matters, from site promotion and applications through to appeals and complex planning obligations. To find out more and for advice on your development proposals, please do get in touch.
