Section 106 Agreements

Local planning authoritieswill often only grant planning permission if the applicant enters into an agreement or undertaking under Section 106 of the Town and Country Planning Act 1990.

A section 106 agreement or unilateral undertaking will contain covenants binding the application to a specific area of land, and it will set out what the applicant agrees to do or not to do and the circumstances and timescales within which they will occur.

Planning obligations may cover one or more of the following:

• Restricting the use of the land or the way in which a development is carried out;
• The kinds of specific operations and activities to be carried out;
• Requiring the land to be used in a specific way;
• Requiring a sum or sums of money to be paid to the local planning authority for a specific purpose.

Planning obligations may be used for a wide range of purposes. However, current government policy gives a clear set of rules to which planning obligations must adhere. They must:

• be necessary (this generally means that without the planning obligation there would be sufficient reason to refuse planning permission for the development);
• be relevant to planning and the development and/ or the use of the land to which they relate;
• relate directly to proposed development and not to other planning related issues in the area;
• be fairly and reasonably related in scale and kind to the proposed development.

Examples of planning obligations in Section 106 Agreements and unilateral undertakings include:

• Contributions to off site play areas or highway works;
• Provision of affordable housing;
• Restricting the use to which the development may be put e.g. granny annexe not to be sold off separately.

How can we help you?

If you must enter into such a legal agreement, we can help you with the following:.

• Supplying all the necessary information to the local planning authority, including proof of title and an appropriate plan;
  
• Preparation of a draft form of section 106 agreement or unilateral undertaking on terms which will be agreeable to the applicant;
  
• Negotiation with the local planning authority to retain favourable and workable clauses for the applicant;
  
• Advising on the effect of any amendments made by the local planning authority or providing a report on the effects of an agreement prepared by the local authority.

Our experience with Section 106 Agreements.

• We have negotiated many section 106 agreements for leading national housebuilders and commercial developers to deliver thousands of new homes, commercial units and mixed use developments. We also have experience in negotiating appropriate agreements for smaller residential developments.
• We can provide full support in relation to obtaining a planning permission, including liaising directly with the Council’s legal team, planning officers and have, where necessary, the assistance of our property development team.
• We have experience and knowledge of dealing with many local planning authorities.
• We have specific knowledge in relation to the provision of affordable housing.
• We are aware of and keep up to date with current case law which may impact on the preparation and negotiation of a section 106 agreement.
• We can advise on further agreements connected with the development of land, for example section 278 agreements which relate to the construction of roads which are to be adopted as highways.

For further information about this, or any other planning related issue, please contact us at the number above, or complete the "Call Back" form and we will contact you when convenient for you.