What is Section 106?
July 30, 2025
As the UK continues to face rising housing pressures between 2024 and 2026, the term “Section 106” has become increasingly important in discussions around affordable and supported housing. Yet many people remain unaware of what it means and how it impacts local communities
Section 106 — often referred to as “S106” — is a legal agreement between property developers and local councils in England and Wales. These agreements are designed to ensure that when new housing developments are built, they also contribute towards local needs such as affordable housing, schools, transport improvements, healthcare services, and community infrastructure. In simple terms, Section 106 helps make sure that large housing developments benefit the wider community, not just private buyers.
These homes are often provided to housing associations, supported living providers, or local authorities to help individuals and families who may struggle to access suitable accommodation through the private housing market. This includes people facing homelessness, mental health challenges, learning disabilities, substance misuse recovery, domestic abuse recovery, young people leaving care, and ex-offenders rebuilding independent lives. The importance of these agreements has grown significantly as housing demand across the UK continues to rise. Recent reports show that over 134,000 households were living in temporary accommodation in England by the end of 2025 — the highest level recorded to date. At the same time, more than 1.34 million households are now on council housing waiting lists across England, highlighting the growing need for affordable and supported homes.
Government policy statements released in 2026 described Section 106 agreements as an “essential mechanism” for delivering social and affordable housing across the country. However, the system is also facing challenges. Industry reports published during 2025 found that thousands of approved affordable homes linked to Section 106 agreements were delayed due to difficulties securing housing providers to manage or purchase the properties. Despite these challenges, Section 106 remains one of the UK’s most important tools for increasing access to affordable housing and creating sustainable communities.
At Pathway Supported Living, we recognise the important role supported housing plays in helping vulnerable individuals access safe, stable, and high-quality accommodation. Through collaboration with local authorities, housing associations, and support providers, supported living organisations continue to help deliver housing solutions that promote dignity, wellbeing, and long-term independence.As awareness around affordable housing grows, understanding how Section 106 works is becoming increasingly important — not only for developers and investors, but for communities and individuals whose lives are directly impacted by access to safe and supportive housing.