Exemption from Section 106 obligations applies when a borrower defaults, even if it has been deregistered

In July, the Court of Appeal ruled that housing intended to be affordable under a Section 106 agreement is no longer subject to this restriction if repossessed by the mortgagee due to default by an RP.  This applies even if they are purchased from the mortgagee after the RP has been deregistered.  The case concerned 16 homes in Westminster originally purchased by RP Kinsman Housing in 2016 for use as affordable housing.  Kinsman was subsequently deregistered in 2023, triggering a default on its loans.  Its lenders took possession of the properties and sold them to a third party, which intends to let them on the open market.  Following the case, this will now be able to proceed.