Securing section 106 obligations on local authority-owned developments: lawful routes when the LPA is both landowner and applicant (England)
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The problem: a local authority cannot contract with itself
It is far from unusual for a local authority to progress development on land it owns. Paragraph 125 of the National Planning Policy Framework (NPPF) positively urges local planning authorities (LPAs) to champion and facilitate the reuse of under-utilised sites and buildings, particularly where this would address identified housing needs in areas with tight land supply and where existing plots could be deployed more efficiently. In such circumstances, the LPA ends up determining the authority’s own planning submission. Frequently, planning obligations under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) are required to secure necessary mitigation for the scheme before permission can be issued. Although the LPA in its decision-making role and the authority as proprietor exercise distinct functions, they ultimately comprise the same legal person. An entity cannot make a binding agreement with itself, and that prohibition extends to agreements made under TCPA 1990, s 106 (section 106 agreements) intended to secure planning obligations. Consequently, there is no mechanism by which such an agreement can be made, concluded, executed or entered into in those circumstances to secure the obligations required for mitigation before consent is granted...
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Web page updated on 21/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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