Successful Section 106 Agreement Negotiation

August 19, 2005 9:00 am Published by

International property developers Kingscourt Homes recently applied to Torbay Borough Council for planning permission to convert a hotel in Paignton, Devon to 21 flats. The Council resolved that the application should be granted permission subject to the developer entering into a Section 106 Agreement within a strict six-week deadline.

The Council insisted that the applicant provide six units for social rented housing and £70,000 financial contribution for public transport, bicycle, and education facilities and the reinstatement of a footpath. The Council was not prepared to accept anything less.

With just three weeks remaining before the deadline, Kingscourt Homes instructed Tetlow King Planning to provide advice on the Section 106 Agreement and to urgently undertake negotiations with the Council. Within the very short period remaining, we successfully negotiated that all of the six units be for shared ownership housing and that the financial contribution be reduced to just £12,500. The Section 106 Agreement was signed and sealed within the deadline and it is estimated that the reduction in contributions saved Kingscourt Homes over £220,000.