Regulations widen scope for section 106 renegotiations

Existing rules allow for applications for modification or discharge of section 106 agreements only where the agreement was entered into over five years ago. Voluntary renegotiation can take place at any time.

The Regulations follow a consultation (12-page / 100KB PDF) on the proposals by the Government launched in August last year. The proposals were made in response to the Government's concern over the high number of stalled developments which had been made economically unfeasible by section 106 agreements entered into in a different economic market.

"We want to ensure that effective renegotiation of planning obligations can be achieved to make them more reflective of the current market and help unlock stalled development, whilst continuing to ensure through the use of obligations that development is acceptable to communities and local authorities in line with local plans," the Government said in the consultation paper.

The Government has also set out proposals in the Growth and Infrastructure Bill, which is currently going through Parliament, to allow renegotiation of affordable housing requirements made by section 106 agreements.

Under the Bill provisions, applications may be made to the local authority to modify, replace or remove such requirements where it "means that the development is not economically viable" and the local authority must deal with the application "so that the development becomes economically viable".

The Town and Country Planning (Modification and Discharge of Planning Obligations) (Amendment) (England) Regulations 2013 (2-page / 48KB PDF) will come into effect on 28 February. Applications can be made from one month after the Regulations come into force.