RURAL ENGLAND — The UK government has proposed ending affordable housing quotas for new developments of between 10 and 49 houses. The National Housing Federation warns this change could lead to a loss of 32,000 affordable homes over the next decade.

These quotas are known as section 106 agreements. Under the proposals being considered, housebuilders would be allowed to make payments to councils in lieu of including affordable homes in their proposals.

Analysis by the National Housing Federation indicates that in the most rural areas of England, more than half of all affordable homes are built on developments of 10 to 49 houses. Kate Henderson, Chief Executive of the National Housing Federation, said, "This requirement for affordable homes on medium sites is one of the most important ways we have of ensuring affordable homes are being delivered in the most rural areas." Henderson added, "Rural families are already in the most acute need of affordable homes, often priced out of the communities they call home, and these proposals risk making the rural housing crisis even worse." She stated, "Removing it could put half of future rural affordable housing at risk, leading to increased waiting lists, rising homelessness and staff shortages in local schools and business."

A Ministry of Housing, Communities and Local Government spokesperson stated that no decisions have been taken on the future of section 106 agreements. Section 106 agreements accounted for 36% of all affordable homes delivered in England in 2024-25.

Separately, Ministers in London and Mayor Sadiq Khan have reduced the amount of affordable housing developers must build to qualify for fast-track planning status.