The Ministry of Housing, Communities and Local Government (MHCLG) has published the report on its study into the extent and value of section 106 agreements and Community Infrastructure Levy (CIL) in England from 2016 to 2017.
The study makes key findings in the following four areas:
- Firstly, it updates the evidence on the current value and incidence of planning obligations. The aggregate value of planning obligations in 2016 to 2017 was £6 billion. 85% of this value comes from section 106 agreements.
- Secondly, it addresses the relationship between CIL and section 106 agreements. The study suggests that CIL is most effective on small, uncomplicated sites in areas of high demand. It notes that outside these high demand contexts, section 106 agreements are preferred.
- Thirdly, it investigates the delays to the planning process caused by section 106 agreement negotiations. The study concludes that the negotiation process does cause delays to the planning process, but that these negotiations are necessary in many cases.
- Finally, it looks at the monitoring and transparency of developer contributions. The study states that there is variability in approaches to monitoring between Local Planning Authorities. It further notes that there is evidence that the proceeds of planning obligations are not clearly, consistently or transparently communicated to communities.