S106 Agreement Planning

S106 Agreement Planning: Why it is important for developers

S106 agreements, also known as section 106 agreements, are agreements made between property developers and local authorities. These agreements are in place to ensure that the development of a property or site benefits the local community in some way. In essence, they represent a legal agreement between the developer and the local authority which outlines a range of obligations that must be met by the developer before the development can proceed.

In this article, we will discuss the importance of S106 agreement planning and the benefits it can bring to developers.

Meeting Local Requirements

The main purpose of a S106 agreement is to ensure that a development benefits the local community. This can include a range of requirements such as contributing to affordable housing, providing public open space or contributing to transport infrastructure improvements. By having a S106 agreement in place, developers can ensure that their development plans are aligned with local requirements and therefore avoid potential delays or objections to the planning process.

Cost Certainty and Mitigation

A S106 agreement can also provide developers with cost certainty by outlining the financial contributions they must make to the local authority. This can help developers to accurately budget for the development and avoid any unexpected costs further down the line. In addition, a S106 agreement can also help to mitigate any risk of legal action from the local authority due to non-compliance with planning requirements.

Improved Community Relationships

By meeting local requirements outlined in a S106 agreement, developers can not only avoid potential objections or delays to the planning process, but can also help to improve community relationships. By contributing to the local community in some way, developers can demonstrate their commitment to the area and help to build positive relationships with local residents and businesses.


In summary, S106 agreement planning is an important aspect of property development, ensuring that developers meet local requirements, have cost certainty and mitigate legal risk, and build positive relationships with local communities.

If you are a property developer, it is essential that you work with experienced professionals who can help you navigate the planning process and ensure that your S106 agreement is in place and meets your needs. By doing so, you can ensure that your development is successful and aligned with local requirements.