What is a Section 106 legal agreement?

Section 106 (S106) Agreements are legal agreements made between Local Authorities and developers.  The agreements are linked to planning permissions and can also be known as planning obligations.

S106 agreements are drafted when it is considered that a development will have a significant impact on the local area that cannot be moderated by means of conditions attached to a planning decision.  

For example, a new residential development can place extra pressure on the social, physical, and economic infrastructure which already exists in a certain area.

A Planning obligation will aim to balance the pressure created by the new development by securing, via a legal agreement, improvements to the surrounding area ensuring that where possible that the development makes a positive contribution to the local area and community.

What the Section 106 agreement will cover

The areas covered by a S106 will depend on the nature of the development and the needs of the District. The most common obligations include:-

• Public open space
• Affordable housing
• Education
• Highways
• Town centre improvements
• Health
• Recreation disturbance avoidance and mitigation strategy (RAMS)