Research reveals on average £210 per household in developer contributions unspentThe Home Builders Federation has published an update to its report on unspent developer contributions. The new analysis is based on FOI responses from 208 local authorities and is now weighted by household census data, exposing significant regional disparities in how funds collected through Section 106 agreements and the Community Infrastructure Levy (CIL) are managed.On average, local councils across England and Wales hold £210 per household in unspent contributions from home builders, equating to 13% of an average council tax bill. However, there are some significant outliers of this average, with certain authorities retaining far more.The London Borough of Brent leads the list, holding £1,517 per household - seven times the national average and equivalent to 100% of the local council tax bill. Similarly, the Royal Borough of Kensington & Chelsea holds around £1,317 per household, with an estimated £88 million in unspent funds.The money is paid by house builders as part of planning permissions granted by Local Authorities for new homes in their areas through what are called ‘Section 106’ agreements. The money is intended to fund improvements and new essential infrastructure such as schools, health facilities, roads, and affordable housing to ensure that developments lead to benefits for both new and existing residents in local communities.The analysis highlights striking regional differences in how developer contributions are managed: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.Despite urgent local needs, earmarked infrastructure funding remains unused:Wokingham Borough Council is holding £40.9 million earmarked for affordable housing – over £590 per household – despite local house prices being more than 10 times local wages.Oxfordshire County Council holds £142 million 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 £18.7 million for social infrastructure – over £370 per household – which could fund around 50 new community sports facilities.Hampshire County Council has £78.8 million allocated for road improvements – over £130 per household – despite rising congestion issues.These findings raise concerns over local authority capacity and accountability in managing developer contributions within appropriate timescales. Barriers to effective fund allocation include insufficient staffing and resources, poor monitoring and auditing of developer contributions, and complexities in infrastructure delivery.With 80% of LPAs operating below full capacity, HBF is calling on Government to introduce greater investment in local authority planning departments to address staffing shortages and introduce stronger guidance or legislative measures to ensure contributions are spent within reasonable timeframes.Greater transparency from Local Authorities is also required; Councils should provide publicly accessible records of developer contributions and, in Infrastructure Funding Statements, detail the reasons for delays and indicate timelines for future spending.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 fully experience the positive impact of development in their areas."
