Find out about planning obligations and Section 106 agreements.
Planning obligations or Section 106 agreement (Town and Country Planning Act 1990) are legally binding agreements on the land to which the planning permission relates. If the land is sold, the new owner becomes responsible for the Section 106 Agreement. They are made between a local planning authority (LPA) and a landowner when granting planning permission and are used to seek both physical on-site obligations and off-site financial contributions, to help make sure that new developments enhance local communities and reduce the impact of developments. Infrastructure includes roads, parks, public transport local employment initiatives, and affordable housing.
Payment of s106 can be at different stages of a development's construction phase or different levels of occupation.
Indexation is usually applied to the financial contributions and the Retail Price Index (RPI) and the provisional Building Costs Information Service (BCIS) figures are used.
Details of what should be provided on site and financial obligations are detailed in the legal agreement.
Legal fees
The applicant will be required to sign an undertaking to cover our legal fees in drafting and entering into the legal agreement before we can start any work on the legal agreement.
Monitoring fee
The monitoring fee per obligation for green space and affordable housing commuted sums is £1,200, all other obligations (with the exception of Travel Plans) will attract a monitoring fee of £900.
Applicants will be invoiced for the monitoring fee upon commencement of the development. The monitoring fees cover the costs incurred or to be incurred by us in monitoring, reporting, maintaining data and systems and related staffing costs
Annual Funding Statement
Local Planning Authorities (LPAs) are now required to produce an annual Infrastructure Funding Statement (IFS) detailing planning obligation receipts and anticipated expenditure. This is to provide clarity and transparency to local communities and developers on the infrastructure delivered and expenditure in relation to planned development.
