Section 106 Agreements

Local Planning Authorities require contributions to affordable housing through Section 106 agreements, sometimes asking for as much as 50% affordable housing on developments of more than 10 units.

Developments of less than 10, and even developments of one single residential unit also attract Section 106 requirements in the form of financial contributions to affordable housing.

The requirement to provide affordable housing is becoming more complex and there are developments in planning policy all the time. A recent development announced on the 28th November 2014 by the Minister of State for Housing and Planning stated that for sites of 10 units or less, and which have a maximum combined gross floor space of 1,000 square metres, affordable housing contributions would no longer be sought. This announcement was welcomed by developers and individuals alike who often find the financial impact of Section 106 agreements renders their projects unviable.

However, our extensive network of contacts in Local Planning Authorities enabled us to find out as soon as this was announced that a number of authorities would not be implementing the Minister’s recommendations.

When submitting a planning application developers and individuals must submit an affordable housing viability report alongside. Our expertise in running the viability assessments and submitting the reports has often resulted in major savings on the required contribution.

There is no consistency across Local Planning Authorities in how they work out their required affordable housing contributions, but they will all require an affordable housing viability statement to be submitted with the application.

We can help your scheme remain viable and profitable by running the viability, writing the report and negotiating with the Local Planning Authority to make sure you neither provide nor pay for more affordable housing than you need to. Our expert consultants have a background in development, planning and affordable housing so we understand all issues from all sides and can come to the best possible arrangement.

For help with S106 agreements, Three Dragons assessments or with the development appraisal toolkit, call us now.