The Home Builders Federation (HBF) has updated their report from October that found £8bn for housebuilding sat in local authority bank accounts
The new update on unspent developer contributions uses data from Freedom of Information responses gathered from 208 local authorities.
The new analysis shows that there are large regional disparities in managing of funds collected through Section 106 agreements and the Community Infrastructure Levy.
The average is not representative of every council
While the average in England and Wales boils down to £210 per household in unspent developer contributions, some councils hold much more.
At the top is the London Borough of Brent, which holds £1,517 per household in unspent contributions; equal to seven times the average and 100% of the local council tax bill. Kensington and Chelsea is not far behind with £1,317 per household and an estimated £88m in unspent developer contributions.
The money is intended to fund local improvements, schools, health facilities, roads, and affordable housing, but is not being spent and is stagnating in local authority bank accounts.
The analysis found that:
- Three of the top 10 councils holding the most unspent contributions are in London, where housing demand is highest.
- Beyond London, councils such as Wokingham (£1,249 per household) and Oxfordshire (£998 per household) also hold disproportionately high levels of unspent funds.
- In total, around 45 councils hold at least twice the national average in unspent contributions on a per-household basis.
- The top 10 councils holding the most funds per household are sitting on at least three times the national average.
- Wokingham Borough Council is holding £40.9m earmarked for affordable housing – over £590 per household – despite local house prices being more than 10 times local wages.
- Oxfordshire County Council holds £142m for schools – the highest amount nationally – while facing urgent demand for new school places in areas like Banbury and Bicester.
- Bracknell Forest Borough Council holds £18.7m for social infrastructure – over £370 per household – which could fund around 50 new community sports facilities.
- Hampshire County Council has £78.8m allocated for road improvements – over £130 per household – despite rising congestion issues.
“It’s critical that delays are addressed”
The HBF say that these findings are cause for concern regarding the manner in which local councils are managing developer contributions. These unspent developer contributions are a symptom of there being blockers to allocation of funds, such as council planning departments being understaffed, under-resourced, or both. Issues can also arise with monitoring and auditing of the funds, and issues with infrastructure delivery.
HBF therefore call on the government for greater staffing and funding of local planning authorities.
Neil Jefferson, chief executive at HBF, said: “The failure of local authorities to deliver essential infrastructure leaves communities questioning the benefits of new development. It’s critical that delays are addressed and councils are given the resources they need to implement these vital projects. With increased transparency and government funding, local residents will be able to experience the positive impact of development in their areas fully.”
