DCLG consults on formal right to re-open s106 negotations

The government has launched a consultation document that proposes giving developers the option to ask councils to renegotiate s106 obligations agreed prior to April 2010.

Where agreement cannot be reached on a voluntary basis, the proposals would enable signatories to section 106 agreements to formally request reconsideration of s106 planning obligations agreed prior to 6 April 2010. At present, s106 obligations cannot be renegotiated for five years once a council refuses a request for voluntary renegotiation by a developer.

The Department for Communities and Local Government (DCLG) said that ministers did not want renegotiations of Section 106 agreements to remove the developers' obligations to provide critical infrastructure or other contributions to offset the effects of the development, and they should not result in land banking.

The change would not apply to planning obligations agreed since April 2010 and current arrangements would continue for these obligations.

At the same time, the Communities Secretary Eric Pickles has announced the appointment of teams of intermediaries to help councils and developers to renegotiate “unrealistic” s106 agreements in an attempt to get moth-balled housing developments back on track.

The intermediaries' services will be offered free-of-charge and will provide advice and support to both councils and developers. The government said that their role will be to provide technical expertise to unlock negotiations, act as go-betweens in disputes and provide access to a range of support services.

Eric Pickles said that too much development is being stalled because of economically unrealistic agreements negotiated between councils and developers at the height of the housing boom. “This results in no development, no regeneration and no community benefits at all when agreements are no longer economically viable.”

The intermediaries are set to begin work with an initial wave of councils described by the DCLG as “keen to address obstacles preventing development in their areas” before working with other councils around the country. The initial authorities include Leeds, Ipswich, Corby, Swindon, Ashford, Gloucester, Kirklees, Carlisle, Northumberland and Durham.

The government estimates that there are more than 1,400 housing schemes of more than 10 housing units with planning permission that are stalled. In March 2011, the chief planning officer wrote to planning authorities asking them to review agreements. The new National Planning Policy Framework requires councils to take account of market conditions and be sufficiently flexible to prevent development being stalled.

The consultation ends on 8th October and can be accessed here: http://www.communities.gov.uk/publications/planningandbuilding/renegotiationobligationsconsult