Section 106 agreements lengthen planning process by 16 months, housing group finds

Infrastructure agreements add 16 months to the planning process, new research by the Home Builders Federation (HBF) has revealed.

Local authorities have reported a 20% rise in Section 106 negotiation timelines over two years, with home builders waiting an average of 515 days for infrastructure agreements to be finalised.

The results of Freedom of Information requests to local planning authorities by the HBF highlight the significant delays infrastructure agreements can add to the planning process.

Section 106 agreements between local authorities and developers set out the infrastructure contributions developers must make for their project to go ahead. This can include funding for schools, roads, public spaces and affordable housing.

The HBF found that the average time to finalise Section 106 agreements has gone up 20% over two years, from 425 days in 2022/23 to 515 days in 2024/25.

It also found that 35% of Section 106 agreements took longer than 12 months to complete, with the longest recorded a staggering 2,679 days, or seven years.

Neil Jefferson, chief executive at the HBF, 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 £7bn delivered through S106 agreements each year, we cannot afford for the system to keep failing.”

He added: “While the 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.”

Lack of capacity in local authorities is thought to be a key contributor to delays. The HBF estimates that 80% of LPAs are now operating below full capacity, with an additional 2,200 planning officers needed across England and Wales to close the staffing gap.

Nine in 10 planning departments are facing difficulty in recruiting staff, according to research by the Ministry of Housing Communities and Local Government, published in February.