Understanding Section 106 Agreements

Section 106 agreements, also known as planning obligations, are legal agreements made between local authorities and developers in the United Kingdom as part of the planning permission process. These agreements are named after Section 106 of the Town and Country Planning Act 1990. Their primary purpose is to mitigate the impact of new development on the local community and infrastructure, ensuring that the development is acceptable in planning terms. Section 106 agreements can cover a wide range of obligations, including the provision of affordable housing, contributions to local schools and healthcare facilities, the creation or improvement of public spaces, and the funding of public transportation improvements. They are essential tools for local authorities to secure necessary improvements and benefits to support new developments.

An example of terms commonly included in Section 106 agreements might be a requirement for a developer to allocate a certain percentage of the new housing units as affordable housing, ensuring that low-to-moderate income families can access them. Another term could involve financial contributions towards the expansion of local schools to accommodate the increased number of children due to the new development. Additionally, a Section 106 agreement might stipulate the creation of green spaces or playgrounds within the development area or improvements to nearby road infrastructure to handle increased traffic. These agreements are legally binding and enforceable, ensuring that developers meet their commitments, thereby balancing development needs with the preservation and enhancement of local community resources and infrastructure.

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