What can you spend S106 money on?

Asked by: Christina Schmeler  |  Last update: February 1, 2026
Score: 4.7/5 (10 votes)

S106 (Section 106) money, or developer contributions, funds local infrastructure and community facilities made necessary by new developments, covering things like affordable housing, new schools, healthcare facilities, public transport, green spaces, roads, cycle paths, and community buildings (sports centers, village halls), but it must mitigate the development's impact and generally can't fund existing issues or general maintenance. The specific uses are detailed in legal agreements between developers and councils, often benefiting specific locations or projects.

What can Section 106 money be used for?

These agreements are a way of delivering or addressing matters that are necessary to make a development acceptable in planning terms. They can be used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing.

What does S106 cover?

Section 106 agreements can cover a range of obligations, such as affordable housing and contributions to infrastructure for transport, education and healthcare. In general, the obligations can take the following forms: a restriction on the development or use of the land.

What can developer contributions be used for?

1.1 Developer contributions are provided in order to mitigate the impact of new development. Typical examples include the provision of green space, school places and transport improvements. Such contributions are also sometimes referred to as planning obligations.

What can section 106 money be used for in NHS?

"Section 106, also called 'planning obligations', can be an important means for NHS trusts and foundation trusts to improve and upgrade their estate when housing growth places additional pressures on services.

Planning Obligations: What is Section 106?

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Who can apply for section 106 funding?

Applications for Section 106 funding can be submitted by: Town/Parish Councils or a constituted Parish Meeting. Any constituted community/voluntary group based within the Harborough District specifically the parish to which the Section 106 money is associated with. Registered charities.

What is a Section 106 financial contribution agreement?

S106 agreements are attached to the land, binding it and whoever owns it. Also referred to as planning obligations, S106 agreements may provide for financial contributions to be made by the developer to compensate for any loss or damage caused by the development, or to mitigate a development's wider impact.

What's the maximum you can build without planning permission?

The extensions roof & ridges must not exceed the height of the original house and the eaves must not exceed 2m in height of the boundary of 3m. Single-storey extensions must not exceed 4m in height. Single storey extension width must not exceed half of the original size of the house.

How to get 100% development finance?

Does development finance allow you to borrow 100%? The general answer is yes. However, in order to ensure you can borrow 100% of the property value , you'll need to provide extra security—typically in the form of another property or land.

What is Section 106 for dummies?

Section 106 agreements are legal agreements between a planning authority and a developer, or undertakings offered unilaterally by a developer, that ensure that certain extra works related to a development are undertaken.

What triggers Section 106?

The first step is Initiation of the Section 106 Process. This step is triggered whenever there is a Federal action, such as a project funded by a Federal agency or a project that requires a Federal approval or permit.

What is a Section 106 restriction?

A local occupancy clause in a Section 106 agreement is a restriction that limits who can occupy a new home to people with a local connection. A Section 106 agreement is a legally binding contract between a local planning authority and a developer or landowner.

Does a S106 expire?

As developers have three years to commence a development once planning permission is granted, it can therefore take a number of years before S106 contributions are received by the Council from the time permission was Originally granted. Where a development does not commence at all, the S106 will most likely expire.

How long does S106 take?

According to the HBF, the mean time it takes to “finalise” section 106 agreements has increased by 20 per cent over the last two financial years, from 425 days in 2022/23 to 515 days in 2024/25. It also found that 35 per cent of all section 106 agreements took longer than 12 months to complete.

Can you live in a shed on your property?

You can live in a shed on your property, but it's often complex and depends heavily on local zoning laws, building codes, and permits, requiring the structure to meet standards for permanent housing, including utilities (power, water, sewage), safety (fire escape, ventilation), and potentially size restrictions, making it legal in some areas (like California ADU rules) but prohibited in others (like Florida). Always check with your local municipality's planning/building department first.
 

Is it cheaper to build a garage or buy a kit?

It's generally cheaper to buy a prefabricated garage kit or a pre-built metal garage than a custom "stick-built" garage because kits save significantly on labor and material waste, with metal options being particularly cost-effective due to factory production and often including delivery/installation. While custom builds offer more flexibility and potentially higher ROI, a kit provides a budget-friendly, faster solution, especially for DIY assembly or simpler designs, making it cheaper overall for most people.
 

Do I need planning permission to enlarge a window?

The Short Answer — Yes, You Usually Need Planning Permission. If you're enlarging an existing window, adding a brand-new one, or turning a window into a door, the straightforward answer is this: Yes — in most cases, planning permission is required.

What can 106 money be spent on?

Spending section 106 funds

  • affordable housing.
  • green space provision.
  • providing educational facilities.
  • traffic calming measures or road improvements.
  • public transport contributions.
  • NHS contributions.
  • local employment initiatives.

How does Section 106 affect property value?

Section 106 requires federal agencies to consider the effects of projects they carry out, approve, or fund on historic properties. Also, federal agencies must provide the ACHP an opportunity to comment on such projects prior to the agency's decision on them.

What is section 106 used for?

Section 106 (S106) Agreements are legal agreements made between Local Authorities and developers. The agreements are linked to planning permissions and can also be known as planning obligations.

What not to say when applying for a grant?

When applying for a grant, avoid focusing on your organization's needs ("we need money to survive"), using jargon/buzzwords ("innovative," "game-changer"), making unrealistic promises ("eliminate hunger"), using weak language ("we hope to"), and failing to follow instructions or tailor your proposal to the funder's specific goals, as this weakens your case and confuses reviewers. 

How is Section 106 enforced?

A vigilant public helps ensure federal agencies comply fully with Section 106. In response to requests, the ACHP can investigate questionable actions and advise agencies to take corrective action. As a last resort, preservation groups or individuals can litigate in order to enforce Section 106.

How to get money for a community project?

Gather letters of support from local organizations, elected officials (such as Councilmembers, state legislators, and neighboring communities), businesses, community groups and local nonprofits to show how the project aligns with the needs and values of the community.