Planning obligations invaluable for local infrastructure and affordable housing

The planning obligations which local authorities impose on private developers are successfully raising billions of pounds for local infrastructure and making vital contributions towards roads, schools and affordable homes, a study has found. Scholars at the Universities of Cambridge and Sheffield carried out the research to investigate the effectiveness of the Section 106 agreements, which are negotiated by local planners when granting permission for new developments. The obligations ensure that the necessary infrastructure to support new developments is in place and also stipulate that developers of private housing schemes create mixed communities by providing an element of affordable housing on new, private estates. The research, which was commissioned by the Department of Communities and Local Government (CLG) is published today and shows that in 2007-8, private developers agreed to fund £5 billion of England's local capital infrastructure through planning obligations - more than ever before. It also found that the contributions have become a major asset in efforts to create more affordable homes, nearly two thirds of which are now provided through S106 agreements. In principle, these contributions are funded by developers from the increase in land value that occurs when planning permission is granted. The obligations first became enforceable under the Town And Country Planning Act of 1990, but until recently little was known about their extent and value.