New national government guidance for Section 106 agreements

New national guidance has been published to help developers, councils and housing associations work together earlier and more effectively to deliver high-quality affordable homes through Section 106 (S106) agreements. 
The National S106 Affordable Housing Engagement Guidance has been endorsed and published by the Ministry of Housing, Communities and Local Government (MHCLG). It sets out a shared approach for improving collaboration across the planning and delivery process, supporting more consistent and effective outcomes for communities. 

Developed jointly by the National Housing Federation, Home Builders Federation, Local Government Association and Chartered Institute of Housing, the guidance reflects input from a cross-sector member group and is designed to support stronger partnership working across the sector. 

What the guidance covers 

The guidance is a voluntary standard that includes a statement of collaboration between partners. It sets out shared principles and highlights the key matters that should be discussed openly and at an early stage by all parties involved in the S106 affordable housing delivery journey. 

Early engagement between developers, councils and housing associations can help ensure affordable homes are well-designed, financially viable and meet local needs. It gives housing associations the opportunity to shape important aspects of schemes, including design, specification, tenure mix, unit types and long-term service charges. 

The work responds directly to findings from the NHF’s 2025 survey, which showed that housing associations involved early in the planning stage acquire more than twice as many S106 homes as a proportion of their pipeline. 

Its impact will depend on how widely the guidance is disseminated, promoted and adopted across the sector. 

Read the National S106 Affordable Housing Engagement Guidance.