Two years ago, we argued that London needed a more pragmatic route to unlock stalled housing delivery – and made the case for reintroducing Section 106BA as a practical, time-limited tool to bridge policy ambition and delivery reality. Since then, the challenges facing the market have only intensified. Viability pressures have deepened, build costs have continued to rise, investor appetite has shifted, and the pipeline of consented but undelivered homes has grown further.
Last month’s announcement by the Government and Mayor of London introduced a time-limited package of planning and funding measures to tackle stalled housing schemes and restore momentum to delivery across the capital. While proposals such as reduced CIL liabilities and relaxed design standards are welcome, this is not a silver bullet, and the underlying issue (aside perhaps of current sales rates which are due to be compounded further by tax rises) remains unchanged: viability.
Across London, hundreds of consented schemes remain paused – victims of rising build costs, reduced RP activity, higher interest rates, and shifting investor appetite. Policy ambition alone won’t bring these sites forward – they already have permission. What’s needed is a mechanism that bridges policy and delivery – and that mechanism already exists.
It’s time to bring back Section 106BA.
A proven tool for difficult markets
Originally introduced in 2013, in the wake of the 2008 financial crisis, Section 106BA gave developers the ability to renegotiate affordable housing requirements where schemes had become unviable -without reopening the entire planning permission. It was transparent, time-limited, and built around a structured viability review between developers and local authorities.
The results spoke for themselves: stalled schemes were unlocked, jobs were protected, and housing delivery recovered at a time when market confidence was fragile. The measure provided the flexibility and speed the system needed – without sacrificing oversight or design quality.
Relevance in today’s market
More than a decade on, the conditions that justified 106BA have re-emerged. Viability pressures are widespread, receivership activity is rising, funding conditions remain difficult, and the pipeline of consented but undelivered homes continues to grow.
The GLA’s new short-term planning route, open until March 2028 (or the publication of the next London Plan), signals recognition that rigid affordable housing targets aren’t sustainable in the current market. But these measures – temporary by design – would benefit from a structured, lasting mechanism to manage viability in practice.
Reinstating Section 106BA alongside these changes would provide exactly that:
- A clear and consistent route to reassess affordable obligations post-consent.
- A time-bound process that keeps dialogue focused and decisions accountable.
- A tool that helps both public and private sectors deliver – faster.
From policy ambition to delivery reality
Reintroducing Section 106BA wouldn’t weaken affordable housing policy; it would protect it, by ensuring delivery continues in changing market conditions. It would also align with the Government and Mayor’s stated goal: to get schemes moving again without reopening full planning debates.
London doesn’t need more consultation on why schemes are stalling – it needs mechanisms to get them built.
The opportunity exists now, as part of this new planning and funding framework, to rebuild confidence and delivery capacity across the capital. Section 106BA worked before. It is still not the silver bullet, but it can work again.
To discuss this or your project further, get in touch with David Brown.
Read the 2023 article here