S106, short for Section 106, is a section of the Town & Country Planning Act of 1990 in the United Kingdom. Under this section, the local planning authority can enter into an agreement for planning obligation with a landowner, the developer and others parties with interest in the land.
Section 106 of the Town & Country Planning Act requires landowners and developers to enter into an agreement with the local planning authority in the district where the land is located.
Landowners and developers enter into a planning obligation under S106 to compensate the local planning authority for things it must build--such as roadways--because of the development.
Aspects of S106 agreements include financial contributions towards highway works, town centre, education and maintenance payments for things like affordable housing and public open space.
Landowners and developers should obtain their district's local planning guidelines to determine what their S106 planning obligation agreement must address.
All planning obligation agreements must be submitted to and approved by the district council prior to construction. Development cannot begin until after the agreement has been approved.