Introduction
SME Residential developers across England are being hit hard by stalled Section 106 obligations, making them more vulnerable when Registered Providers stop buying the required affordable homes.
To unblock these schemes, the Government has introduced temporary S106 Emergency Measures. These provide a clear, time‑bound route to deal with unsold affordable units and move developments to completion.
Why SME Developers Are Feeling the Pressure
For smaller schemes in England — particularly those delivering fewer than 25 affordable homes — unsold S106 units can:
Hold up practical completion
Delay private sales
Create immediate cashflow strain
Trigger lender covenant concerns
The Emergency Measures are designed specifically to resolve these bottlenecks quickly and transparently.
How the Emergency Route Works
1️⃣ Upload to the Homes England Clearing Service (Deadline: 1 June 2026)
All uncontracted S106 homes must be uploaded and kept live for six weeks while RPs bid.
If you don’t upload, you cannot use the Emergency Measures.
2️⃣ If No Reasonable RP Offer Comes In after six weeks:
LPAs in England are expected to renegotiate
Typically, via a Deed of Variation
With decisions encouraged within 12 weeks
This replaces long delays with a defined timetable.
What Counts as a “Reasonable” Offer?
LPAs must take a pragmatic approach, assessing whether RP bids reflect:
Local transfer benchmarks
Comparable S106 values
Scheme viability
Current grant assumptions
Low or heavily conditional offers don’t need to be accepted.
What Developers Need to Evidence
After the six week period, Developers must show:
Proof of Clearing Service upload and expiry
All RP bids received
Why bids were unreasonable (if applicable)
Confirmation homes will complete by 1 December 2027
What This Means for Future SME Schemes
Government is signalling wider S106 changes in England, including:
Standardised templates for sub‑50‑unit sites
Less scope for viability negotiation
Earlier RP engagement requirements
SMEs will benefit from more certainty — but face more upfront risk.
The Bottom Line
The S106 Emergency Measures offer SME developers in England a time‑limited opportunity to unlock stalled developments with unsold affordable homes..
Success depends on acting early, uploading on time, and supplying clear, proportionate evidence.
How Grimshaw Consulting Can Assist
Grimshaw Consulting works alongside SME developers to manage the affordable housing and viability process from end to end. We can provide advice relating to the Emergency Measures in the following ways:
Pre-acquisition viability advice in an evolving policy landscape
RP affordable housing design advice and optimisation
Advice on S106 negotiation strategy and viability positioning
Homes England Clearing Service submissions & evidence packs
RP offer review & justification for rejecting unreasonable ones
Transaction management from Heads of Terms to RP completion.