Half of affordable new homes in rural England could be at risk if planning rules relaxed, analysis shows

Analysis suggests that about half of all new affordable homes built in rural areas of England might be in danger. This is because the government is thinking about making planning rules easier for private companies that build houses.

The government has suggested removing requirements for developers building between 10 and 49 houses. These requirements, called section 106 agreements, usually mean developers must include a certain number of affordable homes. Instead, developers might be allowed to pay money to local councils. Ministers are expected to make a final decision on this soon.

However, the National Housing Federation (NHF) has studied government numbers. Their findings show that in the most rural parts of England, over half of all affordable homes are built on these smaller developments. The NHF represents housing associations and believes that removing these rules could result in 32,000 fewer affordable homes being built over the next decade.

Kate Henderson, chief executive of the NHF, explained that families in rural areas need affordable homes the most. She stated that these proposals could worsen the housing crisis in the countryside. Henderson added that the requirement for affordable homes on medium-sized sites is a key way to ensure they are built in rural areas. Without it, she warned, waiting lists for homes could grow, homelessness might increase, and local schools and businesses could face staff shortages.

A representative for the Ministry of Housing, Communities and Local Government said that no final decisions have been made about section 106 agreements. They mentioned a commitment to making the process simpler and more transparent to help build more homes and infrastructure.

Section 106 agreements have become an important way to provide affordable housing, especially since council house building has decreased. They provided 36% of all affordable homes in 2024-25. However, ministers are concerned that these rules might be slowing down new building, particularly as construction companies face high costs for finance and materials. Some experts also note that housing associations, which often struggle with finances, find it hard to purchase homes built under these agreements.