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 land developer for the benefit of the commnuity. The obligation is sometimes termed as a 'Section 106Glossary: (S106) allows a local planning authority (LPA) to enter into a legally-binding agreement or planning obligation with a property developer for the benefit of the community agreement'.
Such agreements can cover almost any relevant issue and can include sums of money. Possible examples of S106 agreements could be:

  • the local authority will restrict the development of an area of land, or permit only specified operations to be carried out on it in the future e.g. amenity use
  • the developer will financial support the extention of a local school 
  • the developer will create a nature reserve

S106 agreements can act as a main instrument for placing restrictions on the developers, often requiring them to minimise the impact on the local community and to carry out tasks which will provide community benefits.