Policy information sourced from the Barking & Dagenham Local Plan

DMM 1 Planning obligations (Section 106)

Indicative planning obligations

1.

The Council will use planning obligations to address a development’s impacts and to ensure it aligns with the Development Plan for the borough, in line with the requirements set out in the rest of this Local Plan, having regard to the Planning Obligations SPD and any other relevant SPDs. The list below shows what types of Planning Obligations are likely to be covered, but is not exhaustive:

  • affordable housing on-site or, if acceptable, an off-site financial contribution in place of this
  • carbon offset payment, where policy requirements are not met on-site
  • air quality measures off-site or a financial contribution if development does not meet the ‘air quality neutral’ benchmark
  • measures or payment to increase biodiversity where net gain is not feasible on-site
  • contributions to new green infrastructure and ecological resilience
  • highways works or payments towards addressing any impacts as a result of the development
  • other transport (including public transport, walking and cycling infrastructure) requirements arising from transport assessments, travel plans and growth projections. This will also include use of the waterways
  • construction-phase employment and procurement targets
  • occupation-stage employment and procurement targets
  • delivery of on-site social or physical infrastructure or payments necessary to mitigate the specific impacts of the development
  • affordable workspace, where required, or a payment in lieu
  • fees associated with the monitoring of any planning obligation secured which are separate and additional to any legal fees required to be paid to the Council for the preparation of the legal agreement or undertaking.

2.

Other planning obligations may also be sought, where necessary, to mitigate the specific impacts of the development and where these cannot be secured by planning condition(s). Requirements for planning obligations will be assessed on a case-by-case basis and used where they meet the legal tests set out in Community Infrastructure Levy Regulations (2010) as amended.

3.

Payments secured as planning obligations will normally be required at agreed trigger points, although some, for example monitoring fees, are paid upon signed agreement. Where delivery of specific infrastructure or other works are required to enable development, the Council will use planning obligations to define the timing of development in relation to delivery of this.

Financial appraisals and viability review mechanisms

4.

Developments which cannot meet the Local Plan requirements because of viability impacts will be expected to provide evidence of this in a financial appraisal submitted as part of their planning application. If a financial appraisal demonstrates that planning obligations cannot viably be afforded, the Council will prioritise affordable housing, and necessary public transport and active travel improvements. There is an expectation that contributions will be made to healthcare, education infrastructure, affordable workspace and culture and leisure facilities where there is an identified need. Contributions to employment and sustainability will continue to play a significant role in S106 agreements.

5.

Where a financial appraisal has demonstrated any local plan requirements cannot be met, the Council may expect Planning Obligations to include a viability review mechanism, whereby viability is reassessed at an appropriate time based on up-to-date values and costs. Payments up to the level required by policy will be necessary if that viability review indicates these are viable.

6.

Viability reviews will be required to have regard to the GLA’s Homes for Londoners, Affordable Housing and Viability Supplementary Planning Guidance 201761 (or its updated equivalent) and will typically be undertaken when:

  • substantial implementation, as agreed and defined in the legal agreement, of the scheme has not occurred within 24 months of grant of planning permission
  • 75 per cent of units are or have been sold or rented
  • prior to implementation of the second or defined phase of the development or on an annual basis for phased development.

Vacant Building Credit

7.

Where a Vacant Building Credit is sought to reduce the affordable housing contribution, a Vacant Building Credit Statement must be submitted alongside a planning application and such schemes are not eligible for a Fast Track assessment. The statement should demonstrate that:

  • no part of the building has been in continuous use for any six months during the last five years up to the date of the planning application is submitted;
  • the building has not been vacated solely for the purpose of redevelopment; or
  • the building has been marketed for at least 24 months prior to the point of application.

8.

The Vacant Building Credit must define the existing gross internal floor area and the proposed gross internal floor area. Where the total proposed floor space is unclear at the time of application, such as may be the case for outline applications, the final calculation of any Vacant Building Credit will be deferred to a later phase of the development when details are available. This approach will be secured through a Section 106 agreement.

For more information please see the Barking & Dagenham Local Plan