Housing minister Grant Shapps is to write to local planning authorities to urge them to consider rewriting Section 106 (S106) planning agreements where developments have stalled.
Under S106 agreements, developers agree to make a financial contribution to local communities to offset the effects of development in return for planning permission. But Shapps believes that some agreements, signed with developers before the economic downturn, are no longer viable and should be revisited reports regen.net.
A Department for Communities and Local Government spokesman said that the housing minister would shortly write to councils to urge them to consider rewriting the deals.
In a statement, Shapps said: “I am calling on councils to become ‘agents of growth’ for their communities and bring back to life those development sites where housebuilding has stalled.
“This could include reopening negotiations on Section 106 agreements with developers.
“These agreements were negotiated at a time of soaring house prices and are no longer economically viable. In these cases, communities are suffering a double whammy – the homes they need are not being built and neither are the improvements to their local area.”
The news comes ahead of next week’s Budget, which is expected to include a set of measures to reform the planning system in a bid to boost economic growth.