The Planning Committee (Major Applications) A met on Wednesday 27 March 2024 and approved the release of over £35 million in Section 106 funds to support the delivery of affordable housing across the borough.

Release of Affordable Housing Funds

The committee agreed to release £35,862,062.28 from Section 106 (S106) agreements to support the council's New Homes Programme. These funds are crucial for delivering new affordable homes, contributing to Southwark Council's commitment to build 11,000 new council homes by 2043. The Strategic Director of Finance has been authorised to allocate these funds to individual projects within the New Homes Programme.

Section 106 agreements are legal agreements between a local authority and a developer that allow the authority to secure contributions towards infrastructure and facilities needed to mitigate the impact of a development. These contributions can include financial payments, which in this case are specifically earmarked for affordable housing. The report highlighted that these S106 receipts are a key part of the funding strategy for new affordable homes, alongside grants from the Greater London Authority (GLA), right to buy receipts, and council borrowing.

The New Homes Programme aims to deliver social and key worker homes, with a significant number already completed or on site. The report detailed numerous projects that have benefited from or will benefit from these S106 contributions, including developments in wards such as Old Kent Road, London Bridge & West Bermondsey, and Camberwell Green. The funds will be applied to projects based on expenditure and the availability of other funding sources. The report also noted that the council's new homes programme typically delivers a higher proportion of new council homes than planning policy requires, making these S106 contributions vital.

The committee was informed that the council's New Homes Programme aligns with its Fairer Future Commitments, particularly A Place to Belong, and that all projects must comply with climate emergency policies, including energy efficiency and the promotion of sustainable transport. The provision of quality affordable housing is also expected to benefit residents' physical and mental health by addressing issues such as overcrowding and poor living conditions.

The report also clarified the delivery routes for various schemes within the New Homes Programme, distinguishing between direct delivery (DD) by the council and development agreements (DA) with developer partners. This information was provided in a supplementary addendum to the main report.

The meeting concluded with the resolution to agree the release of the funds, with the Strategic Director of Finance authorised to apply them to individual projects within the New Homes Programme.