Unlocking the Potential of Section 106: How Data-Driven Solutions Can Transform Affordable Housing Delivery

Spotlight

Written by Kim Parsons

2/6/25

In the face of a persistent housing crisis, affordable housing remains a cornerstone of the UK’s strategy to ensure that people from all walks of life have access to secure, reasonably priced homes. One of the most widely used mechanisms to deliver affordable housing is through Section 106 agreements, planning obligations that require developers to contribute to local community infrastructure, often in the form of affordable homes.

However, the effectiveness and transparency of these agreements are increasingly under scrutiny, with organisations like The Affordable Housing Network exploring data-led solutions to help improve outcomes for local authorities, developers, and residents alike.

“We need to stop fixating on what’s failed and focus on how we move forward,”. “If we can show what’s being bid on, what people actually want, and what’s working, we can finally align policy with real-world needs.” – Hayden Belcher

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What Is Affordable Housing?

Affordable housing is broadly defined as housing that is provided at a cost below market rates to meet the needs of people who cannot afford to buy or rent at market prices. It typically includes:

Social rent: Usually set at around 50% of market rent and owned/managed by local authorities or housing associations.
Affordable rent: Set at up to 80% of market rent, also managed by housing providers.
Shared ownership: A part-rent, part-buy model aimed at helping people onto the property ladder.
First Homes and other schemes: Targeted at key workers and first-time buyers.

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The overarching aim of affordable housing is to provide long-term, stable housing for those who need it most, including low-income households, young families, and vulnerable individuals.

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The Role of Section 106 Agreements

Under Section 106 of the Town and Country Planning Act 1990, local planning authorities can enter into agreements with developers to mitigate the impact of new developments. These Section 106 agreements often include commitments to provide a proportion of affordable housing as part of a wider residential scheme.

This mechanism plays a crucial role in increasing the affordable housing supply without requiring direct government funding. In fact, in some local authorities, Section 106 contributions account for the majority of new affordable homes delivered each year.

However, while the principle is sound, there are challenges in how these agreements are implemented and monitored.

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Challenges in Delivery and Transparency

Despite the promise of Section 106, questions remain around how effectively it delivers on its commitments. In some cases, what is agreed during the planning stage does not always materialise post-construction.

This may be due to:

Viability reassessments, where developers argue that delivering affordable housing is no longer financially feasible.
Lack of consistent data, making it difficult to track what has been promised and what has actually been delivered.
Changes to tenure mix, with some units shifted from social rent to shared ownership or affordable rent depending on market conditions.

Monitoring these agreements can be complex, particularly for under-resourced planning departments that rely on manual or legacy systems.

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A Changing Role for Registered Providers

In response to increasing financial pressure and reduced public subsidy, many Registered Providers (RPs) have adopted mixed-tenure development models that include both affordable and private rented homes. This shift allows RPs to cross-subsidise social rent properties, using income from higher-rent tenures to fund homes for those on the lowest incomes.

While this model helps ensure continued delivery of much-needed social rent housing, it also raises important ethical questions. Should housing providers be engaged in private market rentals, and how can this be balanced with their social mission? For many, it’s a pragmatic response to funding shortfalls, but the concern remains that without careful oversight, market-driven models could erode the social purpose at the heart of affordable housing.

Transparency in how these funding streams are managed and how much actually goes back into delivering social housing is essential if trust is to be maintained across communities and stakeholders alike.

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What The Affordable Housing Network Is Trying to Achieve

The Affordable Housing Network is a commercial platform working to improve transparency and efficiency in the affordable housing sector by directly connecting Developers with Affordable Housing Providers and focusing on data accessibility and market insight.

Their goal is to provide a clearer picture of how housing is being delivered and what types of homes are in demand. By aggregating and analysing data around tenure types, bidding behaviour, and regional demand patterns, they aim to help:

Local authorities understand where need is greatest and which types of tenure are most appropriate.
Developers make more informed decisions about affordable housing provision.
Policy stakeholders gain visibility into what is working—and where adjustments may be needed.

Crucially, the platform seeks to work alongside existing public sector efforts, offering anonymised data insights that can inform better planning and policy without adding administrative burden.

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Looking Ahead: The Case for Data-Led Policy

As housing needs evolve, so too must the tools and processes used to deliver homes. Better access to reliable, real-time data can support more strategic decisions about where, what, and how to build.

While Section 106 remains a vital part of the affordable housing puzzle, maximising its impact will require collaboration between the public and private sectors, supported by better systems for tracking commitments and understanding demand.

In a climate where every home counts, data-driven solutions like those offered by The Affordable Housing Network may hold the key to bridging the gap between policy intent and practical delivery ensuring affordable housing serves the people who need it, where they need it most.

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Spotlight: Social Housing

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