Inclusionary housing policy in England : the impact of the downturn on the delivery of affordable housing through Section 106

Section 106 (S106) of the English 1990 Town and Country Planning Act provides local planning authorities with powers to require developers to contribute towards affordable housing provision. Over the last two decades, the success of S106, which seeks to extract some of the development value created by planning consent, has been predicated on rising land values and market demand, thus enabling developers to agree and fulfill their planning obligations. The purpose of this article is to explore how negotiations between local authorities and developers with regard to meeting S106 have altered during the economic downturn in England. Drawing on recent empirical research, and through the use of case studies, the article highlights the ways in which S106 agreements have been renegotiated at the site level, with the discretionary nature of the planning system allowing compromises to be made. Despite S106 being tied to market activity, with developer contributions being reduced in a downturn, it remains an important policy tool in securing affordable housing and achieving inclusionary housing goals within England to date.