Home » Section 106 Planning Agreements

Planning Agreement Advice

What is a Section 106 planning agreement?

A Section 106 planning agreement, also known as a planning obligation, is a legal agreement between local authorities and developers. A Section 106 is used to mitigate the impact of a new building/s on the local community and its infrastructure.

Section 106 agreements will usually require financial contributions payable on trigger dates negotiated with the local authority planning team. These trigger dates can be pre-commencement of any work on site, or are linked to the number of houses constructed or occupied. From a cashflow perspective, developers will be keen to push these trigger dates back to allow the sale of a number of houses prior to financial payments becoming due.

The charges are based on the needs of the local community, for example, a residential development can place extra strain on social, physical and the economic infrastructure of a locality, therefore a section 106 will aim to balance the pressure with improvements in the surrounding area.

What does a section 106 cover?

When a planning application is submitted, the local authority will consider the development’s likely impact on the local community, taking into account the following:

  • Highways
  • Affordable housing
  • Public Open Space
  • Education
  • Health
  • Town Centre Improvements
  • Recreation Disturbance Avoidance and Mitigation Strategy

Are section 106 agreements negotiable?

Section 106 agreements can indeed be negotiated within the constraints of the local authority planning policies. Early pre-application discussions will prevent delays in the planning application, ensuring that all planning obligations are discussed, agreed and complied with, thus allowing the planning application to move forward in accordance with a developer’s proposed timeframe.

Is there a timeframe for negotiating planning obligations?

Planning applications need to be made within statutory time limits, therefore, planning obligations should be negotiated to enable those time limits to be complied with. A longer time limit may be applied for, this must be made in writing to the local planning authority.

Landowner Involvement

Developers quite often encounter s106 agreements in the context of conditional contracts, which only oblige the developer to complete a purchase where a satisfactory planning permission has been obtained.  As a result, the negotiation of the s106 agreements often takes place prior to the developer becoming owner of the property.

As s106 agreements are local land charges which bind the land, it is important to recognise that the landowner must enter into the agreement with the local authority, notwithstanding the fact that it will shortly be selling the land and not carrying out the development itself.  Landowners are usually content to do so provided that any liabilities under the agreement only commence once a planning permission is implemented and where they receive an adequate indemnity from a developer.

If you need any advice on Section 106 Planning Agreements, please contact a member of our commercial property law team in confidence here or on 02920 829 100 for a free initial call to see how they can help.

To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.

Contact Our Team
Catherine Burke
View Profile
Ciara O’Brien
Trainee Solicitor
View Profile
Donald Gray
View Profile
Elin Davies
View Profile
Elliw Jones
View Profile
Gareth Wedge
View Profile
Julia Bridge
Legal Director
View Profile
Lisa Evans
View Profile
Lorna Fraser
View Profile
Oliver Morris
Senior Associate
View Profile
Sarah Price
Senior Associate
View Profile
Stephanie Kendall
Trainee Solicitor
View Profile

I have worked with Darwin Gray for a number of years and the level of service, professionalism and timely response is second to none. I would highly recommend Darwin Gray to any business.”

Becs Beslee
Dice FM Ltd

Darwin Gray have provided us with a first-class service for many years now. They really take the time to understand our business and develop relationships which results in advice and support that is contextualised and effective.”

Rebecca Cooper
ACT Training

We have worked with Darwin Gray for several years and have always found their services and advice to be first class.”

Karen Gale
Stepping Stones Group

An extremely professional and sincere company who make time for your queries and understand the need to break down certain facts and information to ensure everything is understood perfectly. I would highly recommend the company to anyone looking for any type of legal advice”

Gwawr Booth
Portal Training Ltd

PSS has worked with Darwin Gray for many years. We have always received an excellent service. Prompt and professional advice and support.”

Ledia Shabani
Property Support Services UK Ltd

We have used several departments within DG recently and we have been very pleased with an effective, efficient and down to earth service. Very happy thus far and I expect that we will continue to use DG.”

Guto Bebb
Farmers’ Union of Wales

Darwin Gray offer us truly superb services. Very professional, quick and services available bilingually which is very important to us, highly recommend.”

Iwan Hywel
Mentrau Iaith Cymru

My “go to” in urgent and time sensitive cases for direction, support and advice. The team are quick to respond to calls or emails for advice and support on all matters. Always explain complex matters in a way a lay person can easily understand.”

Margot Adams
Guarding UK Ltd

Darwin Gray have acted for myself and my company over a number of years and at all times we have been treated with a professional manner yet maintain a common-sense approach at all levels. We couldn’t recommend them more highly.”

Simon Baston
Loft Co

We have been clients of Darwin Gray for many years; they’ve always dealt with all of our legal matters with such professionalism. They work around us, even during awkward hours, and we feel confident we can always rely on them.”

Louise Williams
ACT Training

Darwin Gray has been acting for Siltbuster for more than ten years. We would have no hesitation in recommending Darwin Gray to other organisations small or large.”

Richard D Coulton
Siltbuster Ltd

From the very first conversation, I had no doubt that Darwin Gray should be the firm to receive our instructions on this matter. I would have no hesitation in recommending Darwin Gray.”

Sandra Warr
Tomos TV

We regularly instruct Darwin Gray. Their service in dealing with our transactional matters and disputes is always professional, prompt and efficient.”

John Poppleton
Absolute Property Management Solutions Ltd

Darwin Gray guided me through a long and extended process that would have been much more difficult had it not been for their patience and constant support.”

Ifan Lewis

Excellent and efficient service. Great result achieved, highly professional and transparent on pricing. Would recommend.”

David Stevens

Superb legal service provided. Exceeded expectations. They went above and beyond in order to provide the best service possible.”

Huw Pickrell

Very professional and understanding. They were a calming influence in a very troubling situation and they brought it to a very successful conclusion”

Rachel Jones

We have used Darwin Gray and have been seriously impressed. The personal approach is what Darwin Gray are excelling on and is the reason why we will continue to work with them in the future.”

Cadwyn Housing Association