Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Section 106 agreement definition

What does Section 106 agreement mean? A Section 106 agreement is a planning obligation used to secure site-specific mitigation and developer contributions as part of granting planning permission in England and Wales. Created under section 106 of the Town and Country Planning Act 1990, it is a deed between the local planning authority and persons with an interest in the land (or a unilateral undertaking) that controls how land is developed or used, or requires payments, works or land transfers to address impacts (for example, affordable housing, highways works, open space, travel plans and long‑term management). Key features include: it relates to identified land, is registered as...

Section 106 planning obligations: scope, statutory tests, negotiation, parties and formalities; CIL interaction, conditions and affordable housing, timing, enforcement and modification—practical guide for England and Wales

Published by a LexisNexis Planning expert

Practice notes

Read this Practice Note alongside Practice Notes: The statutory test for section 106 agreements and interaction with community infrastructure levy (CIL), and Drafting section 106 agreements—practical advice for developers.

What can planning obligations do?

Agreements under section 106 of the Town and Country Planning Act 1990 (TCPA 1990)—commonly called planning obligations or s 106 agreements—are entered into by developers or landowners together with local planning authorities (LPAs) within the relevant area. They are tied to a planning permission and serve to render development acceptable where, in planning terms, it would otherwise not be acceptable without such control.

Under TCPA 1990, s 106(1)(a)–(d), a person with an interest in land within an LPA’s area may enter into a planning obligation with the LPA to:

limit how land is developed or used
secure that particular operations or activities are carried out in, on, under or above the land
ensure the land is put to a specified use
require payment of a sum or sums to the LPA

Every clause in an obligation must sit within TCPA 1990, s 106(1)(a)–(d). Where money is deposited with the LPA under an obligation, it gives rise to a form of trust in respect of the monies so paid...

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Web page updated on 27/05/2026

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