What is Section 106?

Baufritz package self build
Self build homes, like this Baufritz home, were under threat of hefty planning obligation payments to their local councils (Image credit: c/o Baufritz)

A Section 106 is a legal agreement between an applicant seeking planning permission and the local planning authority, which is used to mitigate the impact of your new home on the local community and infrastructure. In other words, a new house will mean another car(s) on the roads and perhaps your children will attend nearby schools, putting a little more strain on local services.

As such, Section 106 Agreements often require a financial contribution, made prior to the project starting. Unlike the Community Infrastructure Levy which is tariff-based, Section 106 is charged based on the specific needs of the local community and some councils use the number of bedrooms in the new home to decide what this charge should be. For example, a council might ask for a contribution to the local school for a new four-bedroom family house in an area with limited school places.

Jason Orme
Managing Director

The former Editor of Homebuilding & Renovating magazine, Jason is an experienced self builder and has recently finished renovating his 1960s home. Jason is now Managing Director of Future PLC's Homes' portfolio, which includes UK-leading titles such as Ideal Homes, Livingetc and Homes & Gardens. He is also the author of The Self Build Dream. You can catch Jason in the seminar theatres and Advice Centre at many of the Homebuilding & Renovating Shows across the UK.