Section 104 and Section 106 agreements are essential planning tools in the UK construction and development sector. Section 104 agreements typically refer to the adoption of drainage systems, ensuring that new developments have appropriate surface and foul water drainage infrastructure in place, often leading to the transfer of responsibility to the local water authority. Section 106 agreements, on the other hand, are used to secure contributions from developers towards local infrastructure improvements, such as transport or schools, in return for planning permission. These agreements help mitigate the impact of development on the surrounding area.
Section 104 agreements are typically part of the planning conditions for new housing or commercial developments. The developer is required to submit drainage plans and designs for approval, ensuring that the drainage system complies with regulations and works effectively. Upon completion, the system is often adopted by the water authority, relieving the developer of ongoing maintenance responsibilities. This ensures that the drainage system remains functional and prevents issues such as flooding or blockages in the future.
Section 106 agreements, by contrast, are legally binding contracts between the local planning authority and the developer. They can require developers to make financial contributions towards public services or community infrastructure needed as a result of the development, such as road improvements, affordable housing, or school places. These agreements are used to offset the additional strain new developments place on local resources, ensuring that the growth of communities is sustainable and that the benefits of development are shared.