Section 106

Section 106 of the Town and Country Planning Act 1990 provides for planning obligations (also commonly known as Section 106 agreements) to be entered into between local planning authorities and persons interested in land.

Typically, Section 106 agreements are required by local planning authorities as a pre-condition to the grant of planning permission for a development. They contain obligations on the landowner or developer intended to make the development acceptable, which would otherwise be unacceptable in planning terms. For example, a Section 106 agreement may secure financial contributions towards the provision of improvements to transport and highways, secure the provision of affordable housing, or provide for the provision of open space, just to name a few.

Why is it important?

Section 106 agreements are important to local planning authorities as these allow them to secure benefits from a development scheme and to provide infrastructure in their local area.

Section 106 agreements also have important consequences for landowners and developers because they bind the land and therefore it is not just the original parties to the agreement but also any successors in title which the obligations in the agreements can be enforced against.

Once entered into, Section 106 agreements can also be difficult to vary as it is within the local planning authority’s absolute discretion whether to accept a variation until a certain period of time has expired since entering into the original agreement.

Always seek legal advice

A Section 106 agreement is a planning legal agreement, and therefore it is important to engage a specialist planning lawyer to advise you on the terms of the agreement before you enter into it.

Seeking legal advice will ensure that the necessary protections for you, as well as your funder and any future purchasers or lessees are incorporated into the agreement.

It will also ensure that you have negotiated the best terms possible with the local planning authority and that any obligations being imposed are valid in accordance with the legal tests for imposing planning obligations.