Planning obligations - section 106 agreements
Summary
Section 106 (S106) Agreements are legal agreements between Local Authorities and developers which are linked to a planning permission. These are also known as planning gain, planning benefits, community benefits or planning obligations. S106 legal agreements are associated with a particular development and as they are a legal charge on the land, they transfer automatically with any change in ownership.
These agreements are obligations in accordance with section 106 of the Town and Country Planning Act 1990.
S106 agreements are drawn up when it is considered that a development will have negative impacts on the local area that can’t be mitigated by means of conditions attached to the planning permission. For example, a new residential development can place additional pressure on the social, physical and economic infrastructure which already exists in the surrounding area. Planning obligations aim to balance the extra pressure created by new development with improvements to the surrounding area to ensure that wherever possible a development makes a positive contribution to the local area and community.
When and what will the Council seek in a Section 106 agreement?
All planning applications are assessed on a case by case basis and not all developments will require obligations. When a planning application is submitted to the Council, an assessment is made of the likely type and level of negative impact that a development would generate.
Different types of agreement
The majority of planning agreements are negotiated between the Local Planning Authority and a developer and are then set out in a legal agreement which must be signed by all parties. Although in some cases an agreement can be submitted independently by a developer to be considered by the Local Planning Authority. These are called unilateral undertakings and are only signed by the developer.
What type of obligations can the Council ask for?
Planning obligations can deliver real benefits to the community living around the development site.
However, the use of planning obligations is strictly governed by the basic premise that planning permission may not be bought or sold. Central Government gives guidance on S106 agreements in the form of Circular 05/2005, which states that obligations must be:
- relevant to planning;
- necessary to make the proposed development acceptable in planning terms;
- directly related to the proposed development;
- fairly and reasonably related in scale and kind to the proposed development; and
- reasonable in all other respects
Relationship between S106 and the Community Infrastructure Levy (CIL)
Details of the operation of the CIL Regulations are outlined in legislation that came into force on 6 April 2010. CIL attempts to make sure that almost all planning applications for new buildings or extensions, rather than just large applications, contribute towards funding infrastructure needed to support development in that area. However, the CIL Regulations introduces three tests into law on the use of planning obligations. From 6 April 2010, in determining an application, it is unlawful to take into account a planning obligation that does not meet all three tests, which are that the obligation is:
- necessary to make the development acceptable in planning terms;
- directly related to the development; and
- fairly and reasonably related in scale and kind to the development
Areas which could attract potential obligations include:
- Affordable Housing;
- Primary and Secondary Education;
- Creation, maintenance and adoption of open spaces and recreational facilities;
- Provision or adoption of new highways and public rights of way;
- Library books and materials;
- Healthcare facilities;
- Police facilities;
- Community facilities;
- Travel Plans;
- Local employment and training strategies.
Guidance and advice
Blaby District Council adopted a Planning Obligations and Developer Contributions Supplementary Planning Document (SPD) on 2 February 2010. This outlines Blaby District Council’s strategy for securing developer contributions in relation to new development.
This document does not stand alone and should be read in conjunction with the Council’s policies and strategies for individual issues and must also have regard to the County Council’s Adopted Statement of Requirements for Developer Contributions in Leicestershire (SRDCL). The SRDCL was adopted in December 2006 with an interim review in December 2007.
Major Applications requiring a Section 106 Agreement
Where significant impacts are expected, the Council and the developer will negotiate a S106 Agreement listing all necessary the things that the developer must do or provide to balance the impacts.
Pre-application advice
The Council is committed to providing good quality advice to all applicants before they submit a formal application. Applicants are encouraged where possible to submit a Pre-application (PREAPP) for complex major applications so that the key principles of the S106 requirements (or ‘Heads of Terms’) can be identified and agreed as early as possible in the application process, enabling a more straightforward and efficient determination of the formal application. The Council makes a charge for this service.
After the Heads of Terms have been agreed the application will be presented to the Council’s Development Control Committee, who can decide to approve an application subject to the completion of a S106 Agreement. Where this is the case, the Council and the developer agree the final wording of the S106 Agreement based upon the Heads of Terms. Once the S106 Agreement is signed and completed, the planning permission can be formally issued.
Legal and Monitoring Fees
The Government’s Circular 05/2005 (Para B50) advises Local Authorities to carefully monitor all legal agreements in an open and transparent manner. Blaby District Council is committed to providing a high quality and efficient service to applicants seeking planning permission, and also to the local community affected by any such permission.
The Council therefore charges a Legal Fee for the preparation, checking and production of S106 Agreements and Undertakings, and a Monitoring Fee for the each obligation contained therein. These fees are included in the S106 Agreement or Undertaking and become payable in the period after granting of the planning permission and prior to the formal completion of the Agreement or Undertaking.
Where can I find existing S106 Agreements?
A summary of current outstanding S106 Agreements can be accessed below:
Support
Blaby District Council is committed to both provide good quality advice to applicants and to ensure that wherever possible a development makes a positive contribution to the local area and community. Planning officers can provide advices at a pre-application stage on negotiating, monitoring and complying with S106 Agreements and Undertakings.
Need to know more? Call the Planning Department on 0116 272 7705.
Contact us
| Officer / Team | Development Control Team |
|---|---|
| Postal address | Blaby District Council Council Offices Desford Road Narborough Leicester LE19 2EP |
| E-mail address | planning@blaby.gov.uk |
| Telephone | 0116 272 7705 |
| Fax | 0116 272 7592 |
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This page was last updated on 14th October 2011
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