Section 108 Agreement UK: Explained
If you`re a property developer or investor operating in the UK, the term „section 108 agreement” might sound familiar to you. But what exactly is it, and how does it affect your projects? In this article, we`ll explain everything you need to know about section 108 agreements in the UK.
What is a Section 108 Agreement?
A section 108 agreement is a legally binding agreement between a developer and a local authority. It is also known as a „section 106 agreement,” „planning obligation,” or „planning agreement.” The purpose of this agreement is to mitigate the impact of a development on the local community and infrastructure.
When a developer submits a planning application to a local authority, the authority may require them to enter into a section 108 agreement as a condition of granting planning permission. The agreement will specify the developer`s obligations to the local authority, such as providing affordable housing, contributing to infrastructure improvements, or making financial contributions to community projects.
What Does a Section 108 Agreement Include?
A section 108 agreement can include a wide range of obligations, depending on the local authority`s requirements and the nature of the development. Some common obligations that may be included in a section 108 agreement are:
1. Affordable Housing
The developer may be required to provide a certain percentage of affordable housing units in the development, such as social housing or shared ownership properties.
2. Infrastructure Contributions
The developer may be required to contribute to the cost of improving local infrastructure, such as roads, schools, or parks.
3. Financial Contributions
The developer may be required to make monetary contributions to community projects, such as public art installations or local sports facilities.
4. Environmental Provisions
The developer may be required to include environmental provisions in the development, such as creating green spaces or implementing sustainable energy solutions.
Why is a Section 108 Agreement Necessary?
A section 108 agreement is necessary to ensure that the impact of a development on the local community and infrastructure is appropriately mitigated. It allows the local authority to ensure that the development benefits the community as a whole, rather than just the developer.
Without a section 108 agreement, developers could potentially build projects that have negative impacts on the local area, such as overcrowding or increased traffic. By requiring developers to meet certain obligations, the local authority can ensure that the development contributes positively to the community.
Conclusion
In summary, a section 108 agreement is a legally binding agreement between a developer and a local authority. It specifies the developer`s obligations to the local authority, such as providing affordable housing, contributing to infrastructure improvements, or making financial contributions to community projects. A section 108 agreement is necessary to mitigate the impact of a development on the local community and infrastructure. As a property developer or investor, it`s important to be aware of the section 108 agreement requirements and ensure that you comply with them when submitting planning applications.