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The time taken for local authorities to finalise S106 agreements with housing developers has increased by 20% over the past two years.

New analysis published by the Home Builders Federation (HBF) finds that house-builders are now waiting an average of 515 days for Section 106 (S106) infrastructure agreements to be finalised, adding significant delays to an already complex and time-consuming planning process.

HBF found that 76% of local authorities report average negotiation timescales exceeding 12 months.

S106 agreements between local authorities and developers are a vital part of the planning process, setting out the contributions developers must make to support the local community, such as funding for schools, roads, public spaces, and affordable housing.

Responses to a Freedom of Information request to Local Planning Authorities (LPAs) reveal that the average time to finalise S106 agreements has increased from 425 days in 2022/23 to 515 days in 2024/25.

The research also found that 35% of all S106 agreements took longer than 12 months to complete, with the longest recorded timescale reaching a staggering 2,679 days – seven years. While these delays affect developments of all sizes, they are particularly challenging for small- and medium-sized (SME) developers, who often lack the financial reserves to absorb prolonged delays and rising costs, HBF said.

Lack of capacity in local authorities is thought to be a key contributing factor to delays. It is estimated that 80% of planning authorities are now operating below full capacity, with an additional 2,200 planning officers needed across England and Wales to close the staffing gap. While government has acknowledged the issue and proposed the recruitment of 300 new local authority planners, these graduate and apprentice roles account for less than 15% of the shortfall.

HBF is calling on government to ensure that councils are adequately resourced and to introduce standardised national templates to reduce inconsistencies and negotiation times.

HBF chief executive Neil Jefferson said: “The delays in negotiating Section 106 agreements are a clear example of how a lack of capacity in local authorities and inconsistencies in the planning process are affecting the delivery of much-needed homes. Home builders are proud of the contributions their developments make to local services and infrastructure and want these to be delivered in a timely fashion. With over £7bn delivered through S106 agreements each year, we cannot afford for the system to keep failing.

“While government has acknowledged the staffing constraints and taken welcome steps to address delays in the planning process, we now need to see meaningful action to increase capacity at a scale commensurate with the importance of the challenge.”

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