Planning Obligations and Section 106

About planning obligations

Planning obligations are used as part of the planning application process to address specific planning issues and impacts arising from a development proposal. This mechanism is used to make development proposal acceptable in planning terms that would not otherwise be acceptable.

The obligations are normally agreed between the council, land owners and developers in a legal agreement called a Section 106 (S106) agreement.

For more information about what planning obligations are due from different types of development please refer to the Planning Obligations SPD.

You can search for s106 agreements made with Islington council.

Search for S106 agreements

How to use planning application search tool:

1. Enter the planning application number or the address at the time of application

2. Once you have located the relevant permission, find the section 106 document here

How to request a compliance notice

As part of the purchase and selling of property solicitors will often run a land charges search which may reveal that there is a legal agreement associated with a particular site. It is common for buyer’s solicitors to require a confirmation that the property is not subject to any outstanding S106 financial and non-financial obligations. Requests for compliance notice should be sent directly to s106@islington.gov.uk and should include the following details:

• Planning Application Number

• Deed signed date

• All relevant physical addresses related to the deed

Officers will endeavour to respond to your request within three working days, however, response times may be extended in extremely busy times or if the request is for exceptionally large development.

Who needs a S106 Agreement?

During the planning application process a case officer will guide you through the process of securing a s106 agreement if it is required.  

Generally, if you are applying for planning permission for a development which falls into either of the two categories below then you will need to sign a legal agreement either a section 106 or a Unilateral Undertaking.  

Small Sites: Unliteral Undertaking

New planning permissions which create additional housing units (less than 10 units) will require a legal agreement to secure the small sites affordable housing contribution, carbon offset contributions and car free housing.  

For more information please read the Affordable Housing Small Sites Contributions SPD. A template of a unilateral undertaking for small sites is available to view here.

Major Developments: Section 106 Agreement  

If your planning permission will create either over 1000 sq. meters of commercial or mixed use space or will create over 10 residential units of housing then you will normally have a section 106 agreement.  For more information on what obligations are required refer to the details and formulas provided in the Planning Obligations SPD.

If your planning permission will create either over 1000 sq. meters of commercial or mixed use space or will create over 10 residential units of housing then you will normally have a section 106 agreement. For more information on what obligations are required refer to the details and formulas provided in the Planning Obligations SPD.

Please note, as of 14 December 2020, we have increased CoPCS monitoring fees. More details on changes to CoPCS fees can be found here.

How to conform to a Section 106 agreement

Often planning obligations will become due as soon as the development commences. However, there are also a number of both financial and non-financial obligations that are triggered by other development stages. To ensure that all S106 obligations are complied with, the developers should follow these steps:

• Email S106@islington.gov.uk to inform you will be implementing a planning permission with a legal agreement and your date of intended commencement. Please attach the commencement notice. A template of commencement notice will usually be attached to the agreement. You can view the template here. 

An officer will contact you with an invoice with the correct amounts calculated and detail the various submissions you are due to make prior to commencement.

• Refer to the Section 106 for details on what submissions and payments are due at which trigger points. All submissions can be made to S106@islington.gov.uk

• Make a payment within one month from the demand notice being sent. 

• Upon approval of submissions and receipt of payment discharge notices and acknowledgment of payment notices will be sent. Please keep this as a record.

Important: All payments are subject to indexation to adjust for inflation in between when the planning permission is granted and when the development commences. The specific calculation for this can be found within the legal agreement.

Please note, any late payments will be subject to interest as is defined in the specific legal agreement. In order to avoid penalty, please ensure you email s106@islington.gov.uk at least 14 days prior to commencement.