Could standard Section 106 agreements help medium-sized housing sites move more quickly?

The government has opened a consultation on standard Section 106 agreements for medium-sized housing developments in England.

The proposals apply to schemes of between 10 and 49 homes on sites of up to 2.5 hectares. They are intended to reduce the time and cost involved in negotiating planning obligations—an issue that can cause significant delays after the main planning considerations have been resolved.

The consultation opened on 25 August 2026 and closes on 20 October 2026. These are draft proposals rather than rules currently in force.

What is being proposed?

Four standard templates have been published:

1. A bilateral Section 106 agreement covering financial contributions and council obligations.

2. A unilateral undertaking dealing with financial contributions.

3. An affordable housing schedule for full planning permissions.

4. An affordable housing schedule for outline planning permissions.

The full-permission affordable housing schedule also includes a discretionary cascade mechanism. This could help where the intended tenure or provider arrangements cannot be delivered exactly as originally anticipated.

The government’s intention is that a standard agreement could eventually become the default for medium-sized sites.

Why Section 106 negotiations matter

A planning committee or officer may support the principle of a development, but planning permission cannot always be issued until the associated legal agreement has been completed.

Negotiations can involve, but are not restricted to, such matters as:

• Affordable housing

• Education, healthcare or transport contributions

• Public open space and long-term management

• Highway works

• Biodiversity and habitat management

• Restrictions on occupation or development phasing

Each local authority currently has its own approach, terminology and preferred drafting. Complex negotiations, repeated amendments and limited legal resources can therefore add months to the process.

This has a proportionately greater effect on medium-sized developers, whose professional costs and holding costs are spread across fewer homes.

What standardisation might achieve

A widely accepted template could provide a clearer starting point, reduce routine drafting and allow the parties to concentrate on matters genuinely specific to the site.

That could make costs and timescales more predictable. It might also reduce differences between authorities and make it easier for developers working in several local authority areas.

However, a template will not make the underlying obligations disappear. The amount of affordable housing and financial contributions will continue to depend upon national policy, the Development Plan and the particular circumstances of the proposal.

Standardisation will also be most effective where councils provide clear contribution figures and respond promptly during negotiations.

On-site affordable housing

The government has not proceeded with an earlier proposal that would have allowed medium-sized developments to choose a financial contribution instead of providing affordable homes on site.

On-site provision therefore remains the normal expectation for qualifying schemes. This makes it important to address the affordable housing mix, location, design and access arrangements at the initial layout stage.

Treating these matters as a later legal exercise can result in redesign or create difficulties with registered providers and viability.

What should applicants do now?

Until any new system is adopted, applicants should continue to follow the relevant council’s requirements. Nevertheless, several practical steps can reduce delay:

• Establish likely obligations before fixing the land value or development budget.

• Review the council’s affordable housing and developer-contribution policies.

• Reflect affordable housing, open space and infrastructure in the initial layout.

• Prepare draft heads of terms to accompany the planning application submission where appropriate.

• Ensure that the applicant’s solicitor and planning team are ready to respond promptly.

• Keep viability evidence under review from the beginning rather than raising it at the end.

Standard agreements could improve the process, but early coordination will remain essential. Planning strategy, architecture, viability and legal obligations need to be considered together if a medium-sized site is to proceed efficiently from application to delivery.

Tyler Parkes provides planning and architectural services for residential and mixed-use developments across the Midlands. Its experience includes site appraisal, planning strategy, masterplanning, architectural design and the coordination of applications through to consent.

The consultation documents and response form are available in the government’s standard planning agreements consultation. Responses must be submitted by 11.59 pm on 20 October 2026.