A Section 106 agreement is one of the most important tools local authorities use to make development acceptable.
When a new scheme is likely to put pressure on roads, schools, open space, healthcare or community facilities, a s106 agreement helps ensure the local area isn’t left picking up the bill… and that the development genuinely works for the community.
For anyone involved in buying, selling or advising on property, understanding the basics of s106 can save a lot of confusion (and sometimes a lot of money).
Lets dive in…
What does a s106 agreement actually do?
In simple terms, it’s a legally binding commitment between the developer and the local authority. It can:
- Secure affordable housing contributions
- Fund infrastructure like transport improvements or new public spaces
- Provide community facilities such as parks or play areas
- Restrict or control how the land is used
- Require mitigation measures to minimise negative impacts (e.g., noise, traffic, landscaping)
While planning permission sets the rules, a s106 agreement sets the responsibilities.
How is it secured and how long does it last?
A s106 agreement is attached to the land itself, not the developer. That means future owners inherit any outstanding obligations until the council confirms they’ve been discharged.
A s106 will:
- Be recorded as a Local Land Charge
- Remain binding until fully complied with
- Normally become visible in searches, even many years after completion
This is why conveyancers treat s106 entries with such care; they can affect value, use, timescales, and sometimes even mortgageability.
Variations and legacy agreements
Planning evolves, and so can s106 obligations. You may also see:
- Deeds of Variation: where the authority and developer agree changes (often due to viability or design updates)
- Section 52 agreements: older versions dating from the 1970s, still enforceable where they remain on the record
They all matter because they can impose conditions or financial obligations long after the development was first approved.
Why s106 matters in conveyancing
A s106 agreement can shape:
- What the buyer can and can’t do with the land
- What payments or works are still outstanding
- Whether all conditions were met correctly
- Whether affordable housing restrictions apply
- Whether any future obligations might fall onto the new owner
Buyers rarely expect to inherit a clause requiring, for example, a payment towards a cycle route – but if it’s still undischarged, they need to know.
A clear s106 check helps avoid surprises, delays or misunderstandings between buyer, seller, agent and lender.
Section 106 agreements sit quietly behind most medium‑to‑large developments, making sure the benefits of growth are fairly shared. For property professionals, they aren’t just paperwork – they tell the story of how a site came to be, what promises were made, and what’s still expected.
A quick s106 review can reveal whether obligations were tied up neatly or whether loose ends remain. And when things aren’t quite wrapped up, spotting it early means there’s time to renegotiate, clarify or put protective wording in place – long before contracts are exchanged.
Think of s106 as the fine print of place‑making: essential, often overlooked, but hugely important to the people who live, work and invest in the area. Get it right early, and the rest of the transaction runs far more smoothly.