Section 106 of the Town and Country Planning Act 1990 helps to balance development with sustainability in the UK. Known as S106 agreements or planning obligations, these legal agreements ensure that new developments mitigate the impacts a proposed site may have. Section 106 agreements are also part of the National Planning Policy Framework in the UK.

Our team of ecologists has assisted many clients with s106 agreements and development plans. We work to ensure that developers comply with the necessary requirements to secure planning permission from local authorities.

Additionally, we can refer your case to a solicitor to handle the legal aspects of s106 agreements, ensuring you receive the appropriate support.

What are Section 106 agreements?

Section 106 (s106) agreements are also known as planning conditions or planning obligations. They are legally binding agreements between local authorities and developers.

They are tied to a specific planning application. These agreements are linked to the land itself. This means that they automatically transfer to any new owners if the property changes hands.

The purpose of this type of agreement is to offset the additional strain created by new developments by contributing improvements to the surrounding area.

This ensures that the development benefits the local community so that local planning authorities can class the development as ‘acceptable’ in planning terms. Section 106 agreements are used when the negative impacts of a development cannot be fully addressed through the conditions attached to the planning permission alone.

S106 agreements are different to a Community Infrastructure Levy (CIL), as they are site-specific compared to the standardised charge of Community Infrastructure Levy Regulations.

The legal criteria for when an s106 agreement can be used are set out in Regulations 122 and 123 of the Community Infrastructure Levy Regulations 2010, as amended.

The tests are as follows:

• 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.

National Planning Policy Framework (NPPF) – Policy Tests

In addition to the legal criteria, policy tests are provided in the National Planning Policy Framework (NPPF):

“203. Local planning authorities should consider whether otherwise unacceptable development could be made acceptable through the use of conditions or planning obligations. Planning obligations should only be used where it is not possible to address unacceptable impacts through a planning condition.

204. Planning obligations should only be sought where they meet all of the following tests:

• necessary to make the development acceptable in planning terms
• directly related to the development; and
• fairly and reasonably related in scale and kind to the development.” 

What do Section 106 agreements cover?

Section 106 agreements can cover a wide range of issues, including:

Affordable housing contributions:

Developers may be required to provide a provision of secure affordable housing within their projects. They may also have to contribute funds to build affordable homes elsewhere in the area.

Infrastructure contributions:

These agreements often require developers to make financial contributions towards local infrastructure. This may include roads, schools, and healthcare facilities, which might see increased demand due to the new development.

Environmental and ecological protection:

In terms of ecology, S106 agreements can involve measures to protect local wildlife and ensure sustainable land use. Developers may be required to create green spaces, restore habitats, or contribute to long-term conservation efforts.

Community and public services:

Contributions may also be directed toward public services, such as parks, libraries, and recreational facilities, which support the wellbeing of the local community.

Why are Section 106 agreements important for ecology?

When development occurs near ecologically sensitive areas, S106 agreements can impose conditions to protect these habitats. Developers may be required to create buffer zones, relocate species, or avoid construction during critical times to minimise disruption. This often includes nesting or breeding seasons.

If a development results in habitat loss that cannot be avoided, Section 106 agreements can require developers to compensate for this. This is often done by creating or restoring habitats elsewhere.

This concept, often referred to as “biodiversity offsetting,” ensures that any ecological damage caused by development is balanced by ecological gains in another area.

How can Collington Winter assist?

At Collington Winter, our team of ecologists have helped numerous clients with s106 agreements and development plans. We can help to ensure that developers meet the requirements needed to obtain planning permission from local planning authorities.

Our team can also pass on your case to a solicitor to assist with the legal aspects of s106 agreements to ensure that you receive the right support.

Feel free to contact us using the details below if you would like to find out more about Section 106 agreements and how we can help.