Asked by: Richard Quigley (Labour - Isle of Wight West)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what steps she plans to take to enable registered providers to bid for section 106 housing on the Isle of Wight.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
The government recognises the ongoing challenge posed by the reduced appetite of Registered Providers of social housing to buy affordable homes delivered under Section 106 agreements. We will continue to work with housebuilders, local authorities, and Registered Providers to tackle this problem.
One of the causes of this ongoing challenge is a reduction in Registered Providers’ financial capacity over recent years. The government recognises that Registered Providers need support to build their capacity and increase their contribution to affordable housing supply. We have consulted on a 5-year social housing rent settlement, to give Registered Providers the certainty they need to invest in new housing. The consultation closed on 23 December; we are carefully considering the feedback we received and will respond in due course.
We have also announced that councils will be allowed to keep 100% of the receipts generated by Right to Buy sales, so that they are better able to build and buy new homes. We have provided flexibility for councils to combine Right to Buy receipts with Section 106 contributions (this flexibility will be in place until the end of 2025-26 and then subject to review).