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A Guide to Section 106 Agreements

What is Section 106?

Section 106 of the Town and Country Planning Act 1990 allows a planning authority to enter into a legal agreement with a developer (called a Section 106 Agreement), in relation to a planning application.

They may also be known as Planning obligations, Planning gain, planning benefits or community benefits.

The rules are that they should always be:
  • Necessary
  • Relevent to planning
  • Directly related to the proposed development
  • Fairly and reasonably related in scale and kind to the proposed development
  • Reasonable in all other aspects

There is a fundamental principle that planning permissions must not be bought or sold.

These agreements allow us to mitigate the impacts of a development and ensure necessary infrastructure is provided.


What might be in a Section 106 Agreement?

Agreements may be restrictive (i.e. restricting what land may be used for) or may require the developer to provide something (i.e. public open space).

All residential developments are required to provide open space. Developments with more than 19 dwellings generally provide this as part of the site. Smaller developments usually make an ‘off site’ contribution, these contributions are used within the vicinity of the development to improve open space facilities.

Developments of 3 or more dwellings will be required to provide towards Affordable Housing (Housing that is provided, with subsidy, for people who are unable to resolve their housing needs in the local private sector market because of the relationship between housing costs and incomes). 30% of a development should be Affordable Housing and normally it will be provided on the site itself.

Other provisions can include education, pedestrian and cycle schemes, highways, public transport, community facilities and other things that will be directly affected by the development.


How are contributions allocated and spent?

Given that any agreements should be directly related to the development, any off-site contributions should be spent within areas affected by the development.

For open space contributions, the allocation must be in line with the District’s Open Space Needs Assessment in conjunction with any other audit data. Town and Parish plans, comments and requests may also be taken into account as long as they fit in with the rules under ‘What is Section 106?’.

Often in rural areas where there is little or no formal open space the funds are allocated by the Parish Council in agreement with Waveney District Council.

Occasionally an off-site contribution for affordable housing is made, ideally funds are spent within the vicinity of the development. The funds are always used to resolve housing difficulties within the District.

Education contributions will be required where the schools within the catchment of the development do not have sufficient capacity.

Other obligations may be met via Suffolk County Council or other organisations best placed to provide them.


How can Town and Parish Councils and other organisations get involved?

All planning applications are available to view on the WDC website via the Public Access Planning Information system and Town and Parish Councils are consulted on applications in their area. You can give us any comments within 21 days of consultation.

A valuable way to be involved is to make us aware of future projects in areas where there is likely to be development – the Section 106 Officer keeps a list of projects which could possibly make use of S106 contributions (see contacts).

If you are a Town or Parish Council you may wish to consult with your community and come up with a plan of open space and community projects in your area. This can be included when identifying where off-site contributions should be allocated.


My organisation owns an open space which has been allocated S106 funds, what do we do now?

Please get in touch with the Section 106 Officer to discuss how these funds can be used. You could refurbish or add equipment to a children’s play area, or add a flower bed and seating on a peaceful open space. There are no forms to fill in, just give us a call to discuss the best way to use the funds.


We hope you have found this information useful

You can also view the:

If you have questions not answered on these pages or would like the information in a leaflet format  (pdf 40K) (opens new window) , you are welcome to contact: -

Section 106 Officer
Waveney District Council
Town Hall
High Street
Lowestoft
Suffolk
NR32 1HS

01502 523052