The consultation seeks views on four standard templates to support S106 negotiations.

They are intended to become the default for applications in the future for parties such as freeholders, leaseholders, developers and mortgagees to reduce the time spent agreeing standard provisions and freeing up local capacity to focus negotiations on more complex obligations.

The templates cover bilateral agreements for financial contributions and council covenants, unilateral undertakings for financial contributions, affordable housing schedules for full planning permission and one for outline planning permissions.

Commenting on the consultation, Neal Moy, managing director of Paragon Bank’s development finance division (pictured above), said: "Anything that reduces uncertainty and shortens the path from planning approval to breaking ground is welcome.

“For SME developers in particular, lengthy Section 106 negotiations add significant cost, delay delivery and ultimately can impact project viability.

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"The new proposed affordable housing cascade mechanism is an important acknowledgement of a challenge we see on the ground.

“Developers are increasingly encountering situations where there is limited registered provider appetite for affordable units, leaving homes and developments in open-ended limbo.

“A clearer process for addressing those circumstances should help unblock viable schemes and keep much-needed housing moving forward.”

But he warned that the effectiveness of these changes will hinge on consistent implementation.

He added: “The benefits of standardisation will only be realised if local authorities adopt the new approach consistently and avoid introducing significant local variations.

“Without that consistency, many of the delays and uncertainties the reforms are intended to address will likely remain, particularly at a time when planning departments grapple with ongoing resource and capacity shortages."

The consultation closes on 20th October.