While the case was brought by West Berkshire and Reading councils, Mr Justice Holgate’s ruling applies across the country – so the government has for the time-being withdrawn its directive for councils to grant a Section 106 exemption to self builders and small developments of 10 units or less.

Fundamentally, this means that all councils that still operate a Section 106 scheme (not all do) are likely to return to that policy until/unless the government legislates for the change or comes up with a new way of exempting self builders.

If you already have planning permission for your project, and at the time of the approval no Section 106 contribution was required, then I don’t believe your council can retrospectively change its decision and force the tariff upon you.

However, if you have only submitted an application and not yet had a decision then you will be in muddy waters. Unfortunately I suspect that given the exemption has been termed ‘unfair and unlawful’, if the council wants to charge a Section 106 fee, then you’ll be obliged to pay it (although there’s always the possibility of negotiating it down).

We’re keeping our noses to the ground onthis one, so keep an eye on www.self-build.co.uk/section106 for more updates.

Chris