A market downturn similar to the one after the 2008
recession could see Section 106 delivery cut in half, a new report by housing
consultancy Savills has warned. The report, titled Affordable Housing: Building
Through Cycles, found that housing associations were increasingly exposed to
market downturns, based on trends in housing delivery post-2008. Section 106 is
a clause in planning legislation which requires developers to include a portion
of affordable housing in their developments, which is then often sold to
housing associations.It is a primary driver of affordable housing delivery –
with 45% of housing association homes (14,437) developed using the mechanism in
2016/17. Read more on the Savills website.
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