Section 106 Heads of Terms Template

# Section 106 Agreement — Heads of Terms

**Site Address:** [Full address]
**Application Reference:** [Reference]
**LPA:** [Local Planning Authority]
**Developer:** [Name and registered address]
**Landowner:** [Name(s) and registered address(es)]
**Date of Heads of Terms:** [Date]

*These Heads of Terms are without prejudice and subject to satisfactory completion of the formal Section 106 Agreement.*

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## 1. Affordable Housing

**Total dwellings proposed:** [Number]
**Affordable housing provision:** [%] — [number] units

| Tenure | Units | Percentage |
|--------|-------|------------|
| Affordable/Social Rent | [n] | [%] |
| Shared Ownership | [n] | [%] |
| Other [specify] | [n] | [%] |

**Trigger for delivery:** [e.g. Prior to occupation of the [nth] market dwelling]
**Registered Provider:** [Named RP / to be agreed with LPA prior to commencement]
**Transfer value:** [% of market value / nil / to be agreed]

*Viability appraisal submitted: Yes / No*

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## 2. Education Contributions

**Primary education:** £[amount] — trigger: [e.g. prior to first occupation]
**Secondary education:** £[amount] — trigger: [e.g. prior to first occupation]
**Early years:** £[amount] — trigger: [e.g. prior to first occupation]

*Calculation basis:* [e.g. LPA's standard formula / as agreed with [County Council]]
*Index-linked:* Yes / No
*Expenditure period:* [years from receipt]

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## 3. Highway Contributions

**Highways works:** £[amount] for [specific works, e.g. pedestrian crossing improvements on X Road]
**Trigger:** [e.g. Prior to commencement of development / Prior to first occupation]
**Travel Plan:** Submission of Travel Plan prior to first occupation; annual monitoring for [n] years; monitoring fee: £[amount]

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## 4. Open Space and Recreation

**On-site open space:** [area in m²] of public open space to be provided and maintained in perpetuity
**Off-site contribution:** £[amount] towards [specific project/facility]
**Trigger:** [e.g. Prior to first occupation]
**Maintenance:** [Developer to maintain for [n] years / transfer to parish council / management company]

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## 5. Community Infrastructure Levy (CIL)

*[Complete only if CIL applies in the LPA area]*

**CIL liability:** £[amount] (at current indexed rate)
**CIL relief claimed:** [Social housing relief / Charity exemption / Self-build exemption / None]
**Payment trigger:** [Commencement of development]

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## 6. Employment and Skills

**Local labour:** [e.g. Developer to use reasonable endeavours to source [%] of construction workforce from within [distance] of the site]
**Apprenticeships:** [e.g. One apprentice per [n] construction workers]
**Construction Training Fund:** £[amount] — trigger: [Prior to commencement]

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## 7. Monitoring

**Monitoring fee:** £[amount] (to cover LPA's costs of monitoring the s.106 obligations)
**Payment trigger:** On completion of the s.106 Agreement

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## 8. Other Obligations

| Obligation | Details | Trigger |
|------------|---------|---------|
| [e.g. Health contribution] | £[amount] towards [facility] | [Trigger] |
| [e.g. Public art] | £[amount] / [in-kind provision] | [Trigger] |
| [e.g. Ecological mitigation] | [Description] | [Trigger] |

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## 9. Miscellaneous

- **Overage clause:** [Yes — [%] of profit above [threshold] / No]
- **Phasing:** [If phased development, set out how obligations apply to each phase]
- **Indexation:** All financial contributions to be index-linked to [BCIS / CPI] from the date of the agreement
- **Repayment:** Unspent contributions to be returned after [n] years from receipt

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## 10. Next Steps

1. Agreement of these Heads of Terms by LPA and Developer
2. LPA to instruct solicitors to draft the s.106 Agreement
3. Developer's solicitors to review and negotiate
4. Agreement to be completed prior to [grant of planning permission / commencement]

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*Template prepared using PlanningCore | planningcore.uk*