Section 106 Planning Agreement – An Overview for Property and Construction Professionals
A Section 106 Planning Agreement, also known as a planning obligation, is a legal agreement or condition that can be attached to a planning permission. It is usually negotiated between the local planning authority and the developer or landowner to mitigate the impact of the development on the local community.
The purpose of the agreement is to secure planning benefits that may not be achievable through the planning conditions or planning policies. For example, it may be necessary to provide affordable housing, public open space, cultural facilities, or transportation improvements to ensure the development is sustainable and beneficial to the community.
Section 106 Planning Agreements are governed by Section 106 of the Town and Country Planning Act 1990. They are legally binding contracts that are enforceable against all parties involved in the development, including successors in title. The agreement must be in writing, signed by all parties, and registered with the Land Registry.
The process of negotiating a Section 106 Planning Agreement can be complex and time-consuming. It usually involves a series of consultations and negotiations between the developer, the local planning authority, and other stakeholders, such as the local community, infrastructure providers, and environmental agencies.
The agreement will typically include a detailed description of the planning obligations, the timeframe for implementation, the financial contributions, and the monitoring and reporting requirements. In some cases, the agreement may also include a clawback clause, which allows the local planning authority to recover some of the planning benefits if the developer fails to comply with the obligations.
If you are a property or construction professional involved in a development project, it is important to understand the Section 106 Planning Agreement process and its implications for your project. Here are some key points to consider:
1. Identify the relevant planning policies and requirements that may trigger the need for a Section 106 Planning Agreement.
2. Engage with the local planning authority early in the development process to understand their expectations and negotiate the planning obligations.
3. Allocate sufficient resources and budget to meet the planning obligations and ensure compliance with the agreement.
4. Seek professional legal and financial advice to draft and negotiate the agreement and manage the risk of non-compliance or breach.
5. Monitor and report on the implementation and performance of the planning obligations, and maintain a good relationship with the local planning authority and other stakeholders.
In conclusion, a Section 106 Planning Agreement is a powerful tool for securing planning benefits and promoting sustainable development. However, it requires careful negotiation, drafting, implementation, and monitoring to achieve the desired outcomes. As a property or construction professional, it is crucial to be aware of the Section 106 Planning Agreement process and its impact on your project.