Quick facts about Section 106 agreements
Section 106 agreements are legal agreements between developers and the local council. They can often release funding to deliver projects within a local area and are designed to:
- ease the impact of a new development on the local community.
- compensate the local community for any impact caused by a development - for example if open space is lost.
- help shape the new development - for example ensure a certain number of houses are affordable homes.
Section 106 agreements are:
- often known as planning obligations.
- legally binding agreements between developers /landowners and the local planning authority (or council).
- occasionally involved in other parties, made using powers contained in Section 106 of the Town and Country Planning Act 1990 (as amended).
- linked to the grant of planning permission.
- binding on the land to which the permission relates and whoever owns it, so they pass from owner to owner if the land is sold.
Section 106 agreements should always:
- be directly related to the proposed development.
- be fair and reasonable in scale and kind to a proposed development.
- be reasonable in all aspects and make a proposed development acceptable in planning terms.
Other bits worth knowing...
- Every agreement will be different and reflect the development it relates to.
- With the agreement of the council, developers may make payments, or take certain actions - for example install a play area.
- If a development doesn't go ahead, the Section 106 agreement will not be implemented.
To find out more, visit our Section 106 homepage.