Developers are now waiting an average of 515 days for infrastructure agreements to be finalised according to the Home Builders Federation, a 20% rise over two years.
New analysis by the HBF highlights serious delays in the Section 106 agreement process, with 76% of local authorities reporting average negotiation timescales exceeding 12 months.
Responses to a Freedom of Information request to Local Planning Authorities (LPAs) reveal that the average time to finalise S106 agreements has increased by 20% over two years, 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 seven years. While these delays affect developments of all sizes, they are particularly challenging for SME developers, who often lack the financial reserves to absorb prolonged delays and rising costs.
The HBF says that lack of capacity in local authorities is thought to be a key contributing factor to delays. It is estimated that 80% of LPAs are now operating below full capacity, with an additional 2,200 planning officers needed across England and Wales to close the staffing gap. While the 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 current shortfall.
As a result, HBF is calling on the government to ensure LPAs are adequately resourced and to introduce standardised national templates to reduce inconsistencies and negotiation times, allowing communities to benefit from new housing and the essential infrastructure that supports it.
Neil Jefferson, chief executive at the Home Builders Federation, 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 £7billion delivered through S106 agreements each year, we cannot afford for the system to keep failing.”
“While the 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.”
