When new homes are built, they are supposed to bring more to local communities than bricks and mortar. Through Section 106 agreements and the Community Infrastructure Levy, developers contribute millions of pounds each year towards local infrastructure – funding schools, healthcare facilities, transport improvements and affordable housing.
Yet recent figures show that more than £9 billion in developer contributions is currently sitting unspent in local authority accounts. For communities waiting for improved services and infrastructure, that is not just an accounting issue – it is a missed opportunity. Read this week’s blog to understand why rising unspent contributions matter and what the real impact is for local areas.
The cost of delay
Developer contributions are designed to ensure that growth is supported by the infrastructure communities need. When funds are not deployed in a timely way, the result can be additional pressure on existing services and a perception that development is not delivering local benefit.
In many cases, these contributions are earmarked for specific projects. Yet billions remain unused, with some funds reportedly held for more than five years. At the same time, planning debates often centre on whether infrastructure can cope with new housing.
This disconnect raises an important question. If significant funds have already been secured for local improvements, why are communities not seeing those benefits on the ground?
A growing concern
Neil Jefferson, Chief Executive of the Home Builders Federation, said:
“The balance of unspent developer contributions rising to £9 billion in Local Authority accounts provides further evidence of a capacity crisis in local government and should be a major cause of concern for local communities and for ministers.
“This money should be funding schools, healthcare, affordable housing and other essential local infrastructure, yet billions sit idle, in some cases for over five years. Investment in new housing brings huge economic and social benefits, but far too many of these advantages are going unseen by local communities.”
The call from industry bodies is not simply about releasing funds for the sake of it. It is about ensuring that development is accompanied by the infrastructure that gives communities confidence in growth. Where contributions are collected but not deployed, trust can weaken and resistance to new housing can increase.
Local authorities are facing genuine resource and capacity pressures, particularly within planning and project management. However, the longer funds remain unused, the more communities feel the strain of expansion without seeing visible improvements on the ground.
A need for urgency and transparency
If housing delivery is to regain momentum and public support, infrastructure funding must keep pace. That means improving transparency around how contributions are tracked, allocated and spent, and addressing the capacity constraints that may be preventing timely delivery.
Communities should be able to see clearly how contributions linked to development in their area are being used to enhance local facilities and services. When investment is visible and delivered at the right time, it strengthens confidence and demonstrates that growth can be managed responsibly.
Final thoughts
When billions in developer contributions remain unspent, it is local communities that pay the price. Addressing this issue requires coordination, capacity and accountability. With the right systems in place, developer contributions can fulfil their purpose: supporting sustainable growth, strengthening infrastructure and ensuring that development works for everyone.
What are your thoughts on how developer contributions should be managed and prioritised? We would welcome your views – join the conversation and share your perspective on our Facebook or LinkedIn pages.
03.03.2026
Feature image: Freepik
