Planning obligations and Section 106 Agreements

What is a Planning Obligation?

Section 106 of the Town and Country Planning Act 1990 allows a local planning authority to enter into a legally-binding planning obligation with a developer in association with the granting of planning permission. The obligation is termed a 'Section 106 Agreement'.

How can Section 106 Agreements be used?

The scope of such agreements must meet the following three tests as set out in the Community Infrastructure Regulations 2010. They must be:

  1. Necessary to make the development acceptable in planning terms
  2. Directly related to the proposed development
  3. Fairly and reasonably related in scale and kind to the proposed development

What can be included in a Section 106 Agreement?

Agreements under Section 106 are normally required to mitigate impacts arising from large scale developments, and provide the means of ensuring the provision of necessary services and infrastructure to support new developments. The following are examples of what can be included in a Section 106 Agreement (this list is not exhaustive):

  • Upgrades to the highway network and/or financial contributions to promote sustainable transport modes (e.g. provision of new bus stops/shelters, new walking/cycling routes etc) 
  • Provision of new recreational facilities or financial contributions to assist in the upgrading of existing facilities
  • Provision of local affordable housing
  • Financial contributions to the expansion of existing education and health facilities 

Section 106 Agreements for the provision of affordable housing

Allerdale Borough Council has a standard template for Section 106 Agreements for the provision of affordable housing. The templates has been made available so that applicants can see the kind of document that they will be required to sign. However, these are complex legal documents and you are strongly advised to seek legal advice before entering into an agreement of this kind.

Downloadable Documents

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Adobe PDF format - download the viewerTemplate Section 106 Agreement (Provision of Affordable Housing) in PDF format114 Kb16 secs @ 56k, 0 secs @ 2mb

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0303 123 1702

Allerdale Borough Council
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