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What are Planning Obligations
Planning Obligations or Section 106 Agreements are legal agreements between the applicant of a planning application, the District Council (and any other affected landowner). They are drawn up when it is considered that a development will have negative impacts on the local area that cannot be mitigated by means of conditions attached to the planning permission. Planning obligations aim to mitigate any negative impact of a development and balance the extra pressure created by new development, with improvements to the surrounding area to ensure that wherever possible, a development makes a positive contribution to the local area and community.
These may also be known as planning gain, planning benefits or community benefits.
The legal agreements are associated with a particular development and as they are a legal charge on the land, they transfer automatically with any change in ownership.
Planning Obligations can deliver real benefits to the community living around the development site. However, the use of planning obligations is strictly governed by the basic premise that planning permission may not be bought or sold. Central Government gives guidance on S106 agreements in the form of Circular 05/05 on the Communities and Local Government website, which states the obligations must be:
- relevant to planning;
- necessary to make the proposed development acceptable in planning terms;
- directly related to the proposed development;
- fairly and reasonably related in scale and kind to the proposed development; and
- reasonable in all other respects
Contributions secured under Section 106 of the Town and Country Planning Act 1990 are also governed by and must comply with the Community Infrastructure Levy Regulations 2010 (CIL). These came into force in April 2010.
The CIL regulations state that Obligations must be:
- necessary to make the Development acceptable in planning terms
- directly related to the Development
- fairly and reasonably relate in scale and kind to the Development
Aside from Planning Obligations which involve the provision of affordable housing, the most frequently provided for community gain in respect of housing development within Babergh, relates to the provision of public open space and or play equipment or leisure/recreation facilities.
Policy HS32 of the Babergh Local Plan (Alteration No 2) 2006 , Chapter 3 - Settlement Policy & Housing (search for "HS32" within the document) allows the Council to seek small scale recreation contributions. Where it is not possible for such provision to be made on the site of the development, the majority of such provision is made in the form of offsite financial contributions based on the bedroom size of the dwelling. These sums of money are then held by the Council for use within each Parish or Town; the adopted eligibility criteria and the process associated with expenditure of such funds can be found in the Recreation Contributions page of this website.
Working with Suffolk County Council
Suffolk County Council and local authorities have worked together to produce the Section 106 Developers Guide to Infrastructure Contributions in Suffolk. This guide provides landowners, developers and members of the public with information on the type and scale of contributions, and other obligations, which the authorities may seek for defined types and scales of development.
The Guide was submitted for public consultation between 7th March 2011 and 3rd May 2011.
A copy of Babergh District Councils report on this document was presented to Strategy Committee and can be found here: Report Number K175.
A Statement of Representations and Responses (PDF, 794kb) has been prepared. It sets out a summary of all representations received during the consultation and the Suffolk local authorities response to those comments.
A revised version of the guide, updated in light of consultation, is available here: Section 106 Developers Guide to Infrastructure Contributions in Suffolk (PDF, 281kb).
Following countywide consultation, each of Suffolk’s district and borough councils, the Broads Authority and Suffolk County Council will move to adopt the Developers Guide.
The following topic papers are related to chapter four of the Section 106 Developers Guide to Infrastructure Contributions in Suffolk and provide further information to infrastructure requirements that may be necessary to make a development proposal acceptable in planning terms. These papers have also been updated in light of the consultation:
- Air Quality (PDF, 34kb)
- Archaeology (PDF, 26kb)
- Early Years and Childcare Provision (PDF, 46kb)
- Education Provision (PDF, 66kb)
- Fire and Rescue Provision (PDF, 47kb)
- Health Infrastructure Provision (PDF, 25kb)
- Highways and Transport (PDF, 65kb)
- Libraries & Archive Infrastructure Provision (PDF, 34kb)
- Police Infrastructure Provision (PDF, 27kb)
- Supported Housing Provision (PDF, 26kb)
- Waste Disposal Facilities (PDF, 33kb)
An additional document called the The Code of Practice Protocol (PDF, 207kb) sets out how the authorities and service providers will work together in assessing infrastructure contributions and what a developer can expect from the authorities.
Please also see the Suffolk County Council - Planning Obligations webpage for additional information.
As part of producing this document each Local Authority agreed to identify possible areas of Section 106 contributions which may be sought on particular developments in order to allow greater understanding for all in the matter and to publish these on their website.
Accordingly, the following list has been compiled. It is general only and is not intended to be comprehensive and where necessary and appropriate the District Council reserves the right to seek other forms of contribution providing that these meet the tests in Circular 05/05 and comply with the Community Infrastructure Levy Regulations 2010 (CIL).
In any event, each application will be judged on its merits in accordance with the prevailing development plan policies. Any contributions which seek to mitigate impacts (through Section 106 contributions) must meet the terms of Circular 05/05 and the Community Infrastructure Levy Regulations (CIL) 2010.
Section 106 Contributions at Babergh District Council
Areas which could attract potential obligations for residential developments of between 1-9 dwellings could include:
- Affordable Housing
- Public Open space (either small scale recreational contributions off-site or 10% provision on site)
- Provision and/or adoption of new highways and public rights of way
On residential developments of 10 dwellings and over (and on sites above 1.5 hectares in size) the following additional areas which could attract contributions may include the following in addition to those above:
- Education Contributions
- Structural Landscaping
In addition, on Mixed Use Developments or other developments proposals the following are examples of matters which may also necessitate Section 106 contributions:
- Community or affordable workshop space
- CCTV
- Green Travel Plans
- Contributions towards estimated retail impact of proposals upon the vitality and viability of Town Centres
- Employment and training strategies
- Measures to encourage sustainability or biodiversity (Nature Reserves, wildlife areas, green roofs on buildings)
- Renewable Energy
Small scale developments – standard Section 106 Obligations for Recreational Amenities Contribution
Further information relating to the application of policy HS32 of the Babergh Local Plan (Alteration No:2) 2006 follows:
Sites smaller than 1.5 hectares:
Developments likely to be subject to playing space requirement:
- All new dwellings built on previously undeveloped sites,
- Dwelling gains resulting from redevelopment,
- Conversions, or part conversions, creating additional independent residential units with separate facilities
- Permanent permissions for mobile homes.
Developments which are not likely to be subject to the playing space requirement or elements thereof:
- Replacement dwellings (on a one for one basis),
- Extensions and annexes within the curtilage of a main property for dependent relatives,
- Very sheltered housing schemes, nursing homes, controlled hostel accommodation,
- Bedsit accommodation with shared facilities,
- Temporary permissions for mobile homes,
- Rural Exception Sites (affordable housing in villages where speculative housing would not be allowed) - Policy HS06.
Standard Section 106 Forms and guidance notes (for small scale developments)
In order to assist in the processing of the planning application within the statutory 8 week deadline, the Council has produced a standard form for a Section 106 Obligation relating to detailed and outline applications for small scale developments which attract recreational amenities contributions.
These forms are now available to be downloaded and completed offline. Please click on the relevant link below to obtain the appropriate forms. Hard copies of the forms are available on request from these offices.
There are also guidance notes to help in the completion of these forms.
All applications submitted to the Council for residential development for single dwellings upwards should be accompanied by:
- Two copies of the completed standard form either:
- Form A - for detailed (or full) planning permission or
- Form B - for outline planning permission.
The form requires you to insert certain information where indicated by text in italics. One copy of the completed and signed form must be supplied (the second copy will be returned to you when completed at Babergh).
- Full and current title documentation for the location in question
An example of an acceptable title document can be seen within appendix A of the Guidance Notes. If the land is not registered at H M Land Registry, then you must ask your solicitor to produce a ‘Certificate of Title’ (see Form C above) which must be submitted with an A4 site plan outlined in red. Alternatively, if you provide all deeds relating to the site to obtain a Certificate of Title, a fee of £45 + VAT will be charged.
- The name and address of the applicant’s Solicitor
- The legal fee of £175
This will help the Council to process such applications more efficiently and reduce any delays in entering into lengthy negotiations.
If a planning obligation is not completed within the target date for determination of the application, the application may be determined as it stands and may be refused planning permission because of its failure to contribute towards recreational amenities.
The Government’s Circular 05/2005 (Para B50) advises Local Authorities to carefully monitor all legal agreements in an open and transparent manner.
The Council therefore charges a Legal Fee of £175.00 to cover the reasonable legal costs of the Council for the preparation, checking and production of standard S106 Obligations and Undertakings. Cheques should be made payable to Babergh District Council, or by phoning in your payment to Planning Control on 01473 825858. You may also pay over the counter at the Council Offices.
The Council has also adopted Supplementary Planning Guidance for the provision of outdoor recreation facilities and open space for sites under 1.5 hectares (PDF, 167kb). This document (as updated annually) provides details of the payments required in relation to different house sizes. More information about how the funds received by the Council under this policy are being used within the district can be found on the Babergh Recreation Contributions Funds page of this website.
Charges per dwelling dependent upon the number of bedrooms
Prices effective from 1 April 2012 - 31 March 2013
Bedrooms in Dwelling:
1 - £642.00
2 - £1,284.00
3 - £2,251.00
4 - £3,211.00
5+ - £3,853.00
(Up to date rates can be obtained from the Horticultural and Countryside Manager.)
Large scale residential developments - non standard Section 106 Obligations
On larger developments of 1.5 Hectares or above, residential developments are required to ensure that 10% of the gross site area is provided as public open space (on site), with play equipment in accordance with Policy HS31 Babergh Local Plan (Alteration No 2) 2006 -Chapter 3 - Settlement Policy & Housing (search for "HS31" within the document)
It is important that the developer enters into negotiations regarding the terms of the obligation as quickly as possible in order to prevent any delay in processing the planning application.
Required submissions for non-standard Section 106 Obligations:
- Draft Heads of Terms (e.g. 35% affordable housing; Highway Works)
- The name and address of the applicant’s Solicitor
- Agreement to paying the Council’s legal fees
- Full and current title documentation for the location in question
An example of an acceptable title document can be seen within appendix A of the Guidance Notes for standard planning obligations above. If the land is not registered at H M Land Registry, then you must ask your solicitor to produce a ‘Certificate of Title’ (see Form C above) which must be submitted with an A4 site plan outlined in red. Alternatively, if you provide all deeds relating to the site to obtain a Certificate of Title, a fee of £45 + VAT will be charged.
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