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S106 Agreements, Community Infrastructure Levy and Viability

This is an area of great interest since the publication of the National Planning Policy Framework (NPPF) in 2012 and the Localism Act in 2011.

The NPPF advises that the “…..costs of any requirements likely to be applied to development, such as requirements for affordable housing, standards, infrastructure contributions or other requirements should, when taking account of the normal cost of development and mitigation, provide competitive returns to a willing land owner and willing developer to enable the development to be deliverable” (para. 173).

Negotiating the overall package of infrastructure and Community Infrastructure Levy (CIL) payments is critical to ensuring that development remains viable and thus deliverable, whilst complying with the requirements of the CIL Regulations.  We are experienced in dealing with this on behalf of clients and we will work with, or recommend, planning solicitors and surveyors to support these negotiations where appropriate.

We also work with planning authorities to secure infrastructure commensurate with the scale of development proposed, in particular looking at the timing of provision of infrastructure and the impact that cash-flow from specific projects can have on delivery of key elements of physical and social infrastructure (e.g. schools, roads, community facilities etc).