S106 Management LaptopSection 106 Housing

Are Affordable Housing, Section 106 payments or the Community Infrastructure Levy threatening the viability of your development project?


If so, then we can help. S106 Management only advise developers and are thereby entirely free from conflicts of interest with Local Authorities.

Every Planning Authority, without exception, have policies that allow the relaxation of Section 106 requirements for affordable housing and other Section 106 community benefits if those costs threaten the profitability of the underlying project.

S106 Management can produce a Section 106 viability report to establish the profitability of your project and thereby reveal unviable Section 106 obligations. This is achieved using specialist spreadsheets such as the Housing Corporation Economic Appraisal Tool (HCEAT), the Three Dragons Development Appraisal Tool Kit, and the Greater London Authority Affordable Housing Toolkit (GLA Toolkit). The structure of these spreadsheets are designed to include many costs that a more simplistic examination would omit and, accordingly, give a more realistic view of profitability.

Building costs are justified by reference to BCIS Data revenues by extrapolation of Land Registry Data.

Viability is not necessarily an adversarial process causing delay to your planning application; quite the reverse. A properly presented Section 106 viability report, using an ‘accepted’ Toolkit, is invariably looked for in adopted planning policy and should ideally be used in pre application discussions. In many cases, a Section 106 viability report will be required to accompany your planning application before it will even be validated and registered.

One of our Section 106 viability reports will be welcomed by planning officers at any stage of a planning application and will speed the planning process because the Section 106 viability information is presented in a format that is understood and accepted by Planning Officers and Affordable Housing Officers.

This is not an ‘all or nothing’ process. Our extensive experience shows that if a Section106 viability report cannot entirely eliminate your liability to provide Section 106 affordable housing and the like; profitability can be improved through increasing site densities and delivering Section 106 affordable housing of a type and blend that is more valuable to you, making a commuted cash payment or identifying and prioritising those types of contribution that are most important to the Local Planning Department.

Our Reports provide a very robust picture of Section 106 Viability, directly related to the proposed development, that will be acceptable to any LPA.

If you already have planning permission with an existing Section 106 agreement or unilateral undertaking, the same principles apply, but the approach to secure a renegotiation varies depending upon your exact situation.

If you have difficulty understanding the complexities of this, our FAQ page may be of help.

Whatever stage you’re at; pre-application discussions, making a planning application, awaiting the result of a planning application, making an appeal, or after permission has been granted; we can advise.

Please call on 01392 840002 to see how we can help.