Across England, more than 700 housing developments have been put on hold because housing associations are refusing to take on affordable homes built under Section 106 agreements. This has left thousands of homes at risk of sitting empty.
The Home Builders Federation (HBF) found that about 8,500 affordable homes due to be finished in the next year may not get occupied. On top of that, around 900 newly built homes are already standing empty.
Section 106 agreements are a major part of affordable housing delivery, making up almost half of all supply. They work by requiring developers to sell some homes at a discount to housing associations. But with rising costs and uncertainty in government policy, many providers have stopped buying these homescausing projects to stall.
Ninety HBF members have written to the housing minister, calling for urgent action. They suggest allowing homes to be switched to other uses if affordable deals fall through, or letting developers make payments to councils instead.
Neil Jefferson, chief executive of the HBF, said:
"With more families struggling with housing costs and many in temporary accommodation, it makes no sense for affordable homes to be left empty. Government announcements on social housing are a step forward, but they don't solve the immediate problems with Section 106."
He also warned that around 100,000 private homes are currently stuck in limbo. This risks not only worsening the housing shortage but also hurting small businesses and tradespeople who depend on building projects.
"As it stands, housing associations can't bid for these homes, and private buyers can't buy them. Without action, the housing market faces growing uncertainty," he added.
