Non-Compliance with Section 106 Agreement: What You Need to Know
If you`re a property developer or builder in the UK, you`re probably familiar with section 106 agreements. These agreements are legal obligations that developers must agree to before they can build on a site. Section 106 agreements are intended to ensure that a development delivers benefits to the local community, such as affordable housing, new roads, or public green spaces.
However, failing to comply with a section 106 agreement can have serious consequences. In this article, we`ll explain what section 106 agreements are, why they matter, and what happens if you don`t comply.
What is a Section 106 Agreement?
Section 106 agreements are a planning tool used by local authorities in the UK to secure private sector contributions towards public infrastructure, affordable housing, and other community benefits. The agreements are made between a developer and the local planning authority when a planning application is approved.
A section 106 agreement is a legally binding agreement between the developer and the local authority, which sets out the terms and conditions of the planning permission. The agreement may require the developer to provide certain community benefits, such as affordable housing, or to make financial contributions to the local authority to fund infrastructure improvements.
Why Do Section 106 Agreements Matter?
Section 106 agreements are an important tool for ensuring that new development brings benefits to the local community. Without these agreements, developers could build without regard for the impact on the local area. Section 106 agreements ensure that developers contribute towards the costs of infrastructure improvements, such as new schools or roads, that are necessary to support new development.
Furthermore, section 106 agreements can ensure that new development includes affordable housing. This is particularly important in areas where housing is in short supply, as it helps to ensure that new housing is accessible to a wider range of people.
What Happens If You Don`t Comply with a Section 106 Agreement?
If a developer fails to comply with the terms of a section 106 agreement, the local authority can take enforcement action. This may include:
– Issuing a breach of condition notice
– Serving a stop notice
– Issuing an enforcement notice
– Prosecuting the developer
The consequences of non-compliance can be severe. For example, if a developer fails to provide affordable housing that was agreed in a section 106 agreement, the local authority may require the developer to pay a financial contribution instead. This can be a significant cost, particularly for large-scale developments.
In extreme cases, non-compliance with a section 106 agreement can lead to the revocation of planning permission. This could mean that a developer is unable to proceed with a project, which could be a costly and time-consuming setback.
In Conclusion
Section 106 agreements are an important tool for ensuring that new development brings benefits to the local community. As a property developer or builder, it`s essential to take these agreements seriously and comply with their terms. Failure to do so can have serious consequences, including enforcement action and revocation of planning permission. So always ensure that you comply with your section 106 obligations to avoid any potential legal and financial issues.