Planning obligations (Section 106 agreements)
Planning obligations are agreements entered into between the council and developers, usually in conjunction with the granting of planning permission. They apply to land, binding it and whoever owns it. Made using powers under section 106 of the Town and Country Planning Act 1990, they are also known as 'Section 106 Agreements' or 'Unilateral Undertakings'.
Planning obligations can involve direct works or actions by the developer, and/or financial contributions to the council. Planning obligations must be relevant to the development and reasonable to the scale and kind of the development.
The Supplementary Planning Document (SPD) for S106 Planning Obligations (adopted July 2008). The SPD will be a material consideration in determining planning applications and sets out the Councils approach in seeking planning obligations in a transparent and consistent way. Please note that the charges referred to on page 87 of the SPD have been revised. There is now a fee of 5% on the total value of S106 financial contributions for legal agreements over £12,500. Types of planning obligations sought by Lambeth include:
- affordable housing
- education
- community facilities
- public realm
- transport
- sustainability
- employment and training measures
- town centre and regeneration initiatives.
To assist applicants Lambeth has also developed a non statutory Planning Obligations S106 Toolkit that can be used to calculate a baseline requirement for planning obligations. As the toolkit only calculates the tariff based financial obligations it is important for applications to consult the Supplementary Planning Document (SPD) to determine what else is likely to be required.
The S106 Planning Obligation SPD was adopted in July 2008, and Section 1.35 allows for the update of figures in the SPD. The SPD was amended in July 2010 and the updated figures can be found on page 24 table 3 and page 66 B1 Education (School Place Contributions). The updated figures are in line with the most recent published government guidance on school place construction costs.
These updated figures will apply to all new planning applications received after 1 August 2010 requiring S106 agreements.
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