What Is a S106 Agreement?

S106, short for Section 106, is a section of the Town & Country Planning Act of 1990 in the United Kingdom. Under this section, the local planning authority can enter into an agreement for planning obligation with a landowner, the developer and others parties with interest in the land.

  1. Significance

    • Section 106 of the Town & Country Planning Act requires landowners and developers to enter into an agreement with the local planning authority in the district where the land is located.

    Planning Obligation

    • Landowners and developers enter into a planning obligation under S106 to compensate the local planning authority for things it must build--such as roadways--because of the development.

    Features

    • Aspects of S106 agreements include financial contributions towards highway works, town center, education and maintenance payments for things like affordable housing and public open space.

    Obligation

    • Landowners and developers should obtain their district's local planning guidelines to determine what their S106 planning obligation agreement must address.

    Submission

    • All planning obligation agreements must be submitted to and approved by the district council prior to construction. Development cannot begin until after the agreement has been approved.

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