Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has made an assessment of the potential impact of proposed changes to the National Planning Policy Framework to remove the requirement for developers to provide social and affordable housing on medium-sized sites on the delivery of housing in rural areas.

Between 16 December 2025 and 10 March 2026, the government consulted a new National Planning Policy Framework (NPPF). The draft Framework, which can be found on gov.uk here, retains a strong preference for, and commitment to, on-site delivery of social and affordable housing, reflecting the benefits this provides in terms of the delivery of mixed communities, controlled land prices, and secure cash flow for developers of all sizes.

However, for the reasons outlined in the consultation, the government decided to explore further the potential benefits and drawbacks of enabling developers to discharge social and affordable housing requirements through cash contributions in lieu of direct delivery in the category of “medium” sites. In its fullest form, this approach would mean it was entirely at the applicant’s discretion as to whether to provide social and affordable housing on-site or via a cash payment in lieu.

My Department has made no assessment of the impact that this approach would have on the overall number of social and affordable homes delivered through S106 agreements or on rates of housebuilding more generally.

However, the consultation makes clear that further consideration of this policy proposition would have to take into account its impact on the government’s manifesto commitments to strengthen the existing developer contributions system and to deliver the biggest boost in social and affordable housebuilding in a generation. It would also have to account for the need to ensure payments reflect an appropriate value, and the imperative that such payments could be spent effectively and quickly so as not to push social and affordable housing delivery timescales far into the future.

We are currently analysing the feedback received and will publish our response in due course.