DCLG

Government unlikely to remove controversial Section 106 loophole

The Department for Communities and Local Government is unlikely to remove a controversial loophole allowing developers to avoid building affordable homes – despite a Labour Party commitment to scrap it.

The Department for Communities and Local Government is unlikely to remove a controversial loophole allowing developers to avoid building affordable homes – despite a Labour Party commitment to scrap it.

Shadow housing minister John Healey this week confirmed to The MJ that Labour would drop a viability assessment rule within Section 106 agreements that allows developers to haggle with councils over the number of affordable homes on a development in circumstances where their profit margin will fall below 20%.

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