The Southampton City Council Section 106 Agreement: Understanding the Basics

If you`re a property developer in Southampton, it`s likely that you`ve come across the term « Section 106 Agreement » in your dealings with the Southampton City Council. But what exactly is this agreement and how does it affect your development plans?

In simple terms, a Section 106 Agreement is a legal document that outlines the obligations and requirements that a developer must comply with in order to gain planning permission for their development. These obligations can include the provision of affordable housing, contributions towards community facilities or infrastructure improvements, or the implementation of environmental measures.

The Section 106 Agreement is negotiated between the developer and the Council and is usually entered into before planning permission is granted. Once the agreement is in place, it becomes a legally binding contract and the developer must adhere to its terms in order to avoid potential legal action.

But why does the Council require a Section 106 Agreement in the first place? The answer lies in the Town and Country Planning Act 1990, which states that planning permission should only be granted if it is in the public interest to do so. The Council uses the Section 106 Agreement to ensure that developers are making a fair contribution to the local community and are not solely focused on their own profit margins.

So, what does this mean for property developers in Southampton? First and foremost, it`s important to understand that the Section 106 Agreement can have a significant impact on the profitability of a development project. The costs associated with meeting the requirements of the agreement can be substantial and developers need to factor these into their financial projections.

However, it`s also important to recognise that the Section 106 Agreement can provide benefits for developers as well as the wider community. For example, by providing affordable housing in their developments, developers can broaden their customer base and create a more diverse and inclusive community.

Ultimately, the Southampton City Council Section 106 Agreement is a mechanism for ensuring that property development in the city is carried out in a responsible and sustainable way. By negotiating a fair and reasonable agreement, developers can gain planning permission and contribute to the prosperity of the local area. As such, understanding the basics of the agreement is essential for anyone looking to undertake property development in Southampton.