Section 106 agreements
A section 106 agreement is a legal agreement between the developer, landowner and council, secured against the land. Obligations must be necessary to make the development acceptable, directly related to it, and fairly and reasonably related in scale and kind. Typical obligations include affordable housing, highway works and financial contributions.
National policy says affordable housing should not usually be sought on minor schemes (fewer than 10 homes), except in designated rural areas. Some London boroughs seek contributions on small sites through local policy.
The Community Infrastructure Levy
CIL is a non-negotiable charge set out in a council’s charging schedule, payable per square metre of chargeable floorspace. In London, the Mayoral CIL is added on top.
The CIL process
- Submit the CIL additional information form with your application.
- Submit assumption of liability and any exemption claims, for example self-build or residential annex, before starting work.
- Submit a commencement notice before starting.
- Pay according to the council’s instalment policy.
Missing a step can mean losing an exemption, paying in full immediately, and surcharges.
Viability
Where obligations would make a scheme unviable, a viability assessment can support a reduced affordable housing offer, although councils scrutinise these closely.
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Sources
This article is general information about planning in England at the date shown. It is not advice on any particular site, and the law and policy may have changed since. Please speak to us before relying on it.