Section 106

MQT on 2014-09-17
Session date: 
September 17, 2014
Question By: 
Tom Copley
Labour Group
Asked Of: 
The Mayor


Would you consider it acceptable for fewer social rent and Affordable Rent properties to be secured on a new development through section 106 agreements, if a developer delivered privately rented properties instead?


Answer for Section 106

Answer for Section 106

Answered By: 
The Mayor

My London Plan policy stipulates that the maximum reasonable amount of affordable housing is sought on individual schemes taking into account the specific circumstances and economic viability of development. Where development is only viable where the proportion of private rented sector (PRS) or private sale units is increased, this would be considered on a case by case basis, together with other policies which encourage the delivery of a wide choice of homes and mixed and balanced communities.


Through the Further Alterations to the London Plan I have strengthened policies to ensure boroughs provide more positive support to the PRS sector, recognising the vital role it plays in meeting London’s housing need. Changes require viability appraisals to take account of the distinct economics of covenanted PRS, so that this form of housing does not lose out to more profitable private sale units when developers are considering the appropriate housing mix within their schemes.