Renegotiation of Section 106 to kick-start housing projects

posted 13.08.2012


Hundreds of housing projects could be given the go ahead following the proposed renegotiation of Section 106 obligations.

The Section 106 agreements are a requirement for housing developments which states that developers should make a financial contribution to the local community or provide additional infrastructure, amenities or housing as part of the proposed development.

Communities Secretary Eric Pickles launched a consultation for the renegotiation of the obligations if agreed before April 2010 citing the need for developments not to be constrained by unrealistic agreements made during the height of the housing boom.

There are an estimated 1400 housing schemes (of more than ten units) that have been granted planning permission that are currently stalled.

In order to kick-start the renegotiation of these developments government intermediaries will be engaging with eleven selected local authorities, these being Durham, Northumberland, Carlisle, Kirklees, Gloucester, Ashford, Swindon, Corby, Ipswich and Leeds.

Ministers have stressed that any renegotiations will not alter any obligations for developers to provide critical infrastructure.

Pickles stated: ?Tackling problems with stalled development is essential to getting builders back on moth-balled sites and building the homes we need.

?There is huge potential in sites to boost local economies and we simply cannot afford to have them lying idle because of earlier agreements that are no longer viable.?

Recipro sourced this article from Construction Enquirer

Category: general, health and safety, Mike Close, Our News