Brokers tasked with renegotiating s106 agreements on stalled developments

Teams of intermediaries will now offer a free-of-charge advice and support service to councils and developers and will be available to help support renegotiations of section 106 agreements to restart work on stalled development schemes.

The scheme has been introduced by Communities Secretary Eric Pickles amid concerns 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 Government said.

The brokers will begin work immediately with an initial wave of councils that are keen to address obstacles that are preventing development in their area, the Government said. The teams will then start working with other councils across the country. 

Advice provided by the brokers will include technical expertise to unlock negotiations together with a range of other support services. The brokers will also act as "go-betweens" in disputes.

The Government has also announced a consultation on proposals to give developers the option to ask councils to renegotiate section 106 obligations that were agreed prior to April 2010. Currently these obligations cannot be renegotiated for five years once a council refuses a request for voluntary renegotiation by a developer.

"Tackling problems with stalled development is essential to getting builders back on moth-balled sites and building the homes we need," said Pickles. "There is huge potential in sites to boost local economies and we simply cannot afford to have them lying idle because of earlier agreements that are no longer viable.

The first councils to receive support from the service are Leeds, Ipswich, Corby, Swindon, Ashford, Gloucester, Kirklees, Carlisle, Northumberland and Durham. It is hoped the brokers will support the councils to open up the renegotiation process on stalled developments.

Ministers are clear that any renegotiations of section 106 agreements will not remove the developer's obligation to provide critical infrastructure or other contributions to offset the effects of the development, and they should not result in land banking, the Government said.

Section 106 agreements need to be realistic and deliverable and will take commitment from both councils and developers to ensure they are delivered swiftly, and councils need to ensure they continue to consider local decision making processes when agreeing new deals, the Government said.

It is estimated that there are currently more than 1,400 housing schemes of more than 10 housing units with planning permission where development has stalled.

The chief planning officer wrote to planning authorities asking them to review agreements in March 2011 and the National Planning Policy Framework requires councils to "take account of market conditions" and be "sufficiently flexible" to prevent development being stalled.

The consultation on the renegotiation of section 106 planning obligations will be open for comment until 8 October.