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Section 106 Agreement
Definition
Section 106 (S106) of the Town and Country Planning Act 1990 allows a local planning authority (LPA) to enter into a legally-binding agreement or planning obligation with a landowner in association with the granting of planning permission. The obligation is termed a Section 106 Agreement.
These agreements are a way of delivering or addressing matters that are necessary to make a development acceptable in planning terms. They are increasingly used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing.
The scope of such agreements is laid out in the government’s Circular 05/2005. Matters agreed as part of a S106 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
- reasonable in all other respects.
A council’s approach to securing benefits through the S106 process should be grounded in evidence-based policy.
Further information
Section 106 information – on Southwark Council website
FAQs, reports and general guidance – on Walsall Council website
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