Aug 1 2006
Planning Minister, Yvette Cooper, today urged local authorities to make better use of "section 106" agreements to deliver more affordable housing and infrastructure.
The call to action came as the Government published new guidance for local authorities and developers on how better to use planning obligations. The guide offers practical advice on how to improve the development, negotiation and implementation of section 106 agreements. It also provides real life examples of how to make the process quicker, whilst providing more certainty, and includes a model legal agreement prepared by the Law Society.
A recent study by Sheffield University showed that there is still a great deal of inconsistency between local authorities in the use of planning obligations. The research showed that sixty per cent of medium and large and ninety per cent of minor residential planning permissions do not include s106 agreements at all.
Yvette Cooper said:
"We all know that land values can rise dramatically once planning permission has been given. Yet in the majority of cases developers pay nothing towards infrastructure and affordable housing. That is why we are looking at new ways to raise more from planning gain. And in the meantime we are urging local authorities to make more use of section 106 agreements to provide the affordable homes we need."
The guidance is aimed at improving the use of the current planning obligations system. The Government has also consulted on proposals for a Planning-gain Supplement (PGS), to capture a modest portion of the land value increase resulting from planning permission. The Government will make further announcements on PGS by the end of 2006.