Planning Obligations: Section 106 Agreements
Section 106 Agreements, sometimes called S106 or planning obligations, are agreements to make local improvements that developers can enter into to make a development acceptable.
Section 106 Agreements should always:
- Be directly related to the area the proposed development would impact upon
- Be fair and reasonable in scale and kind to the proposed development
- Be reasonable in all aspects and make the proposed development acceptable in planning terms.
The Agreements are designed to help make sure that new developments enhance local communities and reduce the impact of developments by:
- Easing the impact of a new development on the local community, e.g. providing adequate public open space, improving infrastructure like bus stops
- Compensating for any impact caused by a development - for example if public open space is lost
- Ensuring that a certain proportion of houses on the development are provided as affordable housing
Section 106 Agreements are negotiated between the Borough Council and/or Worcestershire County Council and the developer (occasionally involving other parties) and become legally binding agreements between the Council and the developers/landowners under Section 106 of the Town and Country Planning Act 1990 (as amended).
They are binding on the land to which the planning permission relates. If the land is sold, the new owner becomes responsible for the Section 106 Agreement. However if a development with an Agreement does not proceed, the Section 106 Agreement will not be implemented.
If we think a proposed development requires an Agreement, planning permission will not be granted until one is agreed. Here's our standard Section 106 Agreement template.