Brokers back Pickles over new build 106
Andy Frankish, new homes director at Mortgage Talk, said the lack of understanding of Section 106 agreements by “senior professional people is quite frightening”.
He said: “That’s why this move by Pickles to get specialist advisers on board to help councils and developers sell their 106 affordable houses is great.
“I’ve heard of cases where potential borrowers have actually been discouraged from buying these homes because developers and councils just don’t understand how to sell them.”
Earlier this week communities secretary Pickles bemoaned the number of local housing projects mothballed because of Section 106 agreements forcing developers to make a financial contribution to the community or provide affordable housing, amenities or infrastructure as part of their planning permission.
Pickles revealed expert brokers will now offer a free-of-charge advice and support service to councils and developers to stop Section 106 agreements being a barrier to getting building underway.
Frankish said the need for specialists is critical because mortgage finance for this type of housing is “really niche”.
He said: “It can be so frustrating because we know we can help people to buy these houses and there are some building societies that will go up to 95% loan to value making it really affordable.
“Councils have long lists of people who need housing and yet they do nothing to offer this as an option.
“There is a huge lack of knowledge at local councils about where to direct people who might buy 106 properties – it’s not rocket science to link up with specialist brokers and give those people proper advice.”