What's a section 106 agreement?

I am buying a new property and my solicitor tells me that I must read through a “section 106 agreement” as it will be binding on me. What is this?

I am buying a new property and my solicitor tells me that I must read through a “section 106 agreement” as it will be binding on me. What is this?

Section 106 agreements are legal agreements between local authorities and developers that are linked to a planning permission. These are also known as planning gain, planning benefits, community benefits or planning obligations. Section 106 agreements are drawn up when it is considered that a development may have a negative impact on the area that cannot be dealt with through conditions in the planning permission.

Do councils always request one of these agreements when a planning application is made?

They tend to be requested only on major development schemes. This is because a major new residential development will place additional pressure on the existing social, physical and economic infrastructure in the surrounding area. Planning obligations aim to balance the extra pressure from development with improvements to the area so a development makes a positive contribution to the local area.

What type of benefits can the council ask for?

Examples of benefits that have been agreed and delivered include: improvements to and creation of open spaces; affordable housing; education contributions; play areas; training and employment opportunities; highways and pedestrian and cycle facility improvements.

Most Read

How do they affect the developer?

Obligations are registered as local land charges and will appear in the local authority search that your solicitor will obtain during the conveyancing process. These agreements are enforceable against the developer entering into the agreement and any subsequent owner of the site or part of the site.

How can this affect the owners of the properties on the estate where I am buying?

If the developer fails to carry out its obligations under the section 106 agreement, the council can look to the property owners to carry out any outstanding obligations. Therefore, before you buy a property your solicitor will check through any section 106 agreement with you - and from your knowledge of the estate, you should know if any obligations remain outstanding.

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter