Developer contributions
Section 106 Agreements (S106) are legal agreements between a Local Planning Authority (LPA) and the landowner, usually the applicant/developer. The S106 will outline the planning obligations, which the landowner must comply with.
S106 agreements are secured through the planning application process to mitigate specific planning issues and impacts arising from development proposals. They can require developers to pay financial contributions towards infrastructure but can also secure non-financial obligations. For example, providing on-site affordable housing, provide green space, or a park that can be enjoyed by the local community.
Planning obligations are required to meet statutory tests. They must be:
- Necessary to make the development acceptable in planning terms
- Directly related to the development
- Fairly and reasonably related in scale and kind to the development.
The negotiation of a S106 legal agreement is led by a Planning Officer, in discussion with the developer and consultees. There are various consultees the Planning Officer will work with during these negotiations. Some are within the council, such as affordable housing and others are outside of the council, such as Gloucestershire County Council for education and highways.
Planning obligations contained in S106 agreements run with the land to which they relate. As planning obligations run with the land, any outstanding obligations will be transferred with the land if it is sold.