Section 106 (S106) agreements play a vital role in shaping sustainable communities by ensuring that developments contribute to essential infrastructure and services. However, recent research highlights a growing challenge: billions of pounds in developer contributions remain unspent by local authorities. At Brookbanks, we believe understanding the purpose of these agreements, and how to recover unspent funds, is critical for developers and stakeholders alike.
Grounded in the Town and Country Planning Act 1990, S106 agreements are legal obligations designed to mitigate the impact of development. They must be:
Typically, these agreements cover contributions for highways, education, affordable housing, and community facilities. They are binding on the land and can be modified or discharged under certain conditions.
According to recent Home Builders Federation (HBF) research, local authorities in England and Wales are holding over £8 billion of infrastructure payments by developers, including more than £6 billion from S106 agreements and nearly £2 billion from the Community Infrastructure Levy (CIL). Alarmingly, only £20.6 million has been returned to developers in the last five years
.
Several factors contribute to this issue:
For many developers, recovery of unspent contributions is not a priority. Reasons include:
Actively pursuing unspent contributions offers significant advantages:
To maximise recovery opportunities:
We’ve launched a dedicated Section 106 recovery service to support developers in reclaiming unspent contributions. Our team will:
To learn more watch the full webinar, or contact Ben Wakeling at ben.wakeling@brookbanks.com and connect on LinkedIn.
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