Commercial / Property Development

Commercial / Property Development


Section 106 Agreements 

Planning obligations or ‘Section 106 Agreements’ are private agreements made between local authorities and developers.

Section 106 Agreements can be attached to a planning permission to make an acceptable development – one which would otherwise be unacceptable in planning terms. The land itself, rather than the person or organisation that develops the land, is bound by a Section 106 Agreement - something any future owners will need to take into account.
Section 106 agreements are however, only permitted with certain restrictions.
These restrictions may include:
  • How the land can be used
  • Capping future sales of the property in line with the value of the local housing market
  • The scope of any developments/future development rights
  • The manner in which developments are undertaken
  • Requiring certain activities to be carried out on the land
  • Require the granting of rights to third-parties
  • Setting timeframes in which the planning obligations must be met

If you are a developer looking to draft or negotiate a Section 106 Agreement then please contact us today to seek experienced legal advice.

Contact us today on 01554 755101 or email


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Section 106 Agreements are used for three purposes:

  • Prescribe the nature of development (for example, requiring a given portion of housing is affordable).
  • Compensate for loss or damage created by a development (for example, loss of open space).
  • Mitigate a development’s impact (for example, through increased public transport provision).