Section 106 Agreement
Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; these are linked to planning permissions and can also be known as planning obligations.
Section 106 agreements are drafted when it is considered that a development will have significant impacts on the local area that cannot be moderated by means of conditions attached to a planning decision.
The land itself, rather than the person or organisation that develops the land, is bound by a Section 106 Agreement, something any future owners will need to take into account.
The S106 will vary depending on the nature of the development and based on the needs of the local authority. The most common obligations include:-
- Public Open Space.
- Affordable Housing.
- Education.
- Highways.
- Town centre Improvements.
- Health.
Section 106 agreements are always negotiable and developers are urged to employ the services of a suitably qualified S106 consultant.
Note that a S106 is different to CIL. CIL is non-negotiable, usually. CIL is not chargeable on affordable housing.
Page Updated: 21st November 2020