Wednesday, 28 November 2018

Housing Market Downturn ‘Could Cut Section 106 Affordable Housing Delivery In Half’


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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