S106 Agreements

Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; also known as planning obligations.

Section 106 agreements are drafted to mitigate the impact of development proposals; restrictions on the use of the land or the operation of the development or to make contributions towards the local infrastructure and facilities.

New development can add pressure on the social, physical and economic infrastructure. The planning obligation helps to improve the area, and where possible make contributions to support the development impact on the local infrastructure.

The legal agreement usually covers the following areas

  • Affordable Housing
  • Education
  • Highways
  • Public Open Space
  • Town centre Improvements

The content of the S106 agreement is agreed through the consultation period of the planning application with the relevant parties and planning officer. An application can not be determined until the S106 agreement has been completed with the Local Authority.

Unilateral Undertakings

If the proposal is for a minor development you have the option of completing a Unilateral Undertaking, rather than a full S106 Legal Agreement.

A Unilateral Undertaking is a simplified version of a planning agreement, which is quick and straightforward to complete and is agreed by the landowner and any other party with a legal interest in the site. This can help speed up the process of securing planning permission.

A Unilateral Undertaking consists solely of the payment of financial contributions, to be paid prior to commencement of development. It includes an obligation to pay the Council’s costs in monitoring and managing the implementation of the planning obligation.

CIL – Community Infrastructure Levy

The Community Infrastructure Levy is a charge which can be levied by local authorities on new development in their area to help them deliver the infrastructure needed to support development in their area.

The charge for CIL varies according to the local authority who set the schedule depending on the area. The levy is due when development is commenced.

There are some reliefs and exemptions for development related to residential annexes and extensions, minor development, charitable and social development, self-build etc. There are conditions that need to be met to apply for these benefits.