What Is the Difference between a S106 Agreement and a Unilateral Undertaking

When it comes to UK planning law, two terms that often come up are s106 agreements and unilateral undertakings. Both of these are legal agreements made between developers and local authorities, but they serve different purposes.

S106 agreements, also known as planning obligations, are formal agreements between a developer and a local authority. These agreements are designed to mitigate the impact of a new development on the surrounding area and community. Typically, a s106 agreement will include provisions for affordable housing, education and community facilities, public open spaces, and infrastructure improvements. The local authority will negotiate the terms of the s106 agreement with the developer and ensure that the obligations are met.

On the other hand, a unilateral undertaking is a legal agreement made by a developer that is not negotiated with the local authority. Instead, the developer will submit the undertaking to the local authority for approval. A unilateral undertaking will typically be used when a developer wants to seek planning permission for a development that is outside of the local authority`s development plan. The undertaking will typically include provisions to mitigate the impact of the development, such as contributions to affordable housing or infrastructure improvements.

So, what is the key difference between s106 agreements and unilateral undertakings? The answer lies in the negotiation process. S106 agreements are negotiated between the developer and the local authority and are binding on both parties. Unilateral undertakings, on the other hand, are submitted by the developer and are only binding on the developer. The local authority is not obliged to accept the terms of the undertaking, and they may decide to negotiate their own s106 agreement instead.

In summary, both s106 agreements and unilateral undertakings are legal agreements made between developers and local authorities to mitigate the impact of new developments. However, s106 agreements are negotiated between the two parties and are legally binding on both, while unilateral undertakings are submitted by the developer and are only binding on the developer.