Section 106 (S106) Planning Obligations

Section 106

Planning obligations are legal obligations used to reduce or manage the impacts of a development. They can be made through a legal agreement under Section 106 of the Town and Country Planning Act 1990 between the council and someone with an interest in the land. They can also be made through a unilateral undertaking under the same Act, where someone with an interest in the land makes these obligations on their own without the council. These are called Section 106 (S106) agreements.

Obligations are split between financial and non-financial obligations.

Non‑financial obligations in an S106 agreement can require a developer to:

• limit how the land is developed or used
• carry out certain works or activities in, on, under, or over the land
• use the land in a specific way

Financial obligations (also called developer contributions) are payments that help fund the infrastructure needed to support the development. The council can require these payments to be made on a specified date, dates, or periodically. The types of contributions the council currently collects include:

• affordable housing (including commuted sums)
• local employment schemes
• off‑site biodiversity net gain
• monitoring fees
• artistic contributions

Contact the Section 106 Team