Affordable Housing Requirements: What Housing Associations Need to Know About Section 106 Agreements

Housing associations face growing pressure to deliver safe, compliant and affordable homes. Rising demand, stricter regulations, and complex planning obligations make every project more challenging from planning to handover.

One key mechanism shaping affordable housing delivery is the Section 106 Agreement. But what does this mean for housing associations, and how can the right delivery partners help meet obligations without delays or compliance risks?

What Is a Section 106 Agreement?

A Section 106 Agreement (S106) is a legal agreement between a local authority and a developer under Section 106 of the Town and Country Planning Act 1990. It makes a development acceptable in planning terms that councils would otherwise refuse.

Often, this means securing contributions for affordable housing, but agreements can also cover schools, highways, and other community infrastructure.

These agreements allow housing associations to acquire new affordable homes and make them responsible for ensuring they are safe, compliant, and ready for residents.

Read more here: GOV.UK - Planning obligations guidance

How Do Affordable Housing Requirements Work?

When developers apply for planning permission, councils may require that a proportion of new homes be affordable.

Example:

• A developer plans 100 new homes.

• The council requires 30% to be affordable.

• That means 30 homes must deliver lower rents or sale prices, in line with affordability criteria.

Percentages vary by authority, with London often requiring higher contributions.

Read more: GLA - London Plan definition of affordable housing

Why Are Affordable Housing Requirements Important?

Affordable housing obligations tackle inequality, keep communities mixed, and support residents by:

• Prioritising homes for those who live and work in the area.

• Balancing private and affordable tenures in new developments.

• Ensuring homes remain accessible to households priced out of the private market.

For housing associations, this means balancing mission and delivery: acquiring stock quickly, while ensuring new homes meet compliance, safety, and tenant satisfaction expectations.

Read more here: House of Commons Library – Affordable housing overview

What Counts as Affordable Housing?

The National Planning Policy Framework (NPPF) defines affordable housing as:

• Affordable Rent - capped at up to 80% of local market rents.

• Social Rent - typically around 50-60% of market rents, set through the National Rent Regime.

• Intermediate housing - including shared ownership, where residents part-buy and part-rent their home.

Each Section 106 agreement is shaped by local housing needs and planning policies, meaning no two projects are identical.

Learn more about affordable housing here: GOV.UK - Fact Sheet 9: What is affordable housing?

The Challenges for Housing Associations

While Section 106 agreements are vital for boosting affordable housing supply, they bring challenges:

• Quality concerns - affordable units must match the standards of market homes.

• Compliance risk: Obligations under the Building Safety Act 2022 and Social Housing (Regulation) Act 2023 add layers of accountability.

• Timelines - planning and handover delays can disrupt allocations.

• Resident experience: New homes must meet Decent Home Standards and be safe, warm, and welcoming.

Case Study: From Derelict Club to 12 Starter Homes

Let's look at a practical example from a past project.

In Dorset, Ecosafe transformed a derelict social club into 12 starter homes, creating affordable housing opportunities for local families.

The project involved extensive refurbishment, compliance upgrades, and a complete reconfiguration of the site to meet modern housing standards.

By working closely with the local authority and housing providers, we turned an unused community space into much-needed homes delivered on time, to full compliance standards, and ready for residents to move into quickly. Partnering with contractors experienced in compliance and community-focused delivery, housing associations turn Section 106 opportunities into real community benefits.

How Ecosafe Supports Housing Associations

Ecosafe partners with housing associations to ensure affordable homes delivered through Section 106 agreements are compliant and places residents proudly call home.

Our services include:

• Void property management - bringing homes back into use quickly and safely.

• Fire safety works - from fire door installation to compartmentation and compliance inspections.

• Planned maintenance - kitchens, bathrooms, roofing, and essential services.

• Refurbishment & compliance upgrades - aligning homes with the latest safety and housing standards.

What sets us apart is our experience working in live housing settings. We protect vulnerable tenants, minimise disruption, and work with housing teams to ensure smooth delivery. That’s why housing associations across the South West and London trust Ecosafe to deliver safe, compliant homes at scale.

Why This Matters to Housing Associations Right Now

The environment is changing fast:

• The Building Safety Act 2022 places new accountability on landlords and housing providers.

• The Social Housing (Regulation) Act 2023 strengthens consumer standards and tenant satisfaction measures.

• Rent changes link to the government formula; for example, a 2.7% rise is due in 2025 (Consumer Price Index (CPI) + 1%).

Section 106 acquisitions are an efficient way for housing associations to expand their stock. However, they also come with heightened responsibility to ensure that homes are compliant, safe, and aligned with tenant needs.

A Quick Recap

Affordable housing requirements and Section 106 agreements are not optional extras; they’re core to how the UK delivers new homes. Housing associations represent both opportunity and responsibility.

Through strategic collaboration with trusted partners, housing associations can:

• Reduce compliance risks.

• Strengthen relationships with councils, developers, and communities.

• Deliver homes that meet regulatory obligations and exceed resident expectations.

Ecosafe Group's mission, Safer Homes, Brighter Futures, underpins every project. From compliance works to refurbishment and maintenance, we support housing associations in delivering homes that are safe, sustainable, and ready for the future.

If your housing association is preparing for Section 106 acquisitions, choose a partner who understands compliance, regulation, and resident expectations. Ecosafe delivers homes faster and safer, with tenant satisfaction built in, helping you stay compliant and keep communities thriving.

Get in touch

Dial: 01202 935064

Email: Liam Jacobs | Business Development Manager | liam@ecosafegroup.co.uk