Quick facts about Planning Obligation agreements

Planning Obligation agreements are designed to:

  • ease the impact of a new development on the local community
  • compensate the local community for any impact caused by a development, for example if open space is lost
  • help shape the new development, for example ensure a certain number of houses are affordable homes

Planning Obligation agreements are:

  • often known as Section 106 agreements, other names include Unilateral or Grampion agreements
  • legally binding agreements between developers/landowners and the local planning authority (or council)
  • may also occasionally involve other parties
  • made using powers contained in Section 106 of the Town and Country Planning Act 1990 (as amended)
  • linked to the grant of planning permission
  • binding on the land to which the permission relates and whoever owns it, so they pass from owner to owner if the land is sold

Planning Obligation agreements should always:

  • be directly related and relevant to the proposed development
  • be fair and reasonable in scale and kind to a proposed development
  • be reasonable in all aspects and make a proposed development acceptable in planning terms

Other things worth knowing:

  • Every agreement will be different and reflect the development it relates to
  • With the agreement of the Council, developers may make payments, or take certain actions - for example install a play area
  • If a development does not go ahead, the Planning Obligation agreement will not be implemented