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Q&As
Do self builders need to submit financial viability reports as part of S106 or are they immune from S106?
Do self builders need to submit financial viability reports as part of S106 or are they immune from S106 (similar to CIL)? Also, as my property has been vacant for over three years (converting from commercial to residential), does the council have to grant me vacant building credit if they do insist on S106 contribution? Any help would be greatly appreciated as I'm getting lots of conflicting advice from council and consultants.
Thanks, Mikail
One Answer
Hi Mikail,
The Community Infrastructure Levy (CIL) and Section 106 agreements (S106) are two ways that local planning authorities secure contributions from developers towards local infrastructure.
CIL is a tariff-based system – the council publishes a fee per square metre of new floorspace that is payable. Self builders are usually exempt for paying CIL (though this is not automatic, it is important to submit the correct forms at the right time to secure your self build exemption).
A Section 106 is a negotiated legal agreement used to target some of the harm or pressure that might be caused by new development.
Since most infrastructure requirements are met under CIL these days, S106 agreements are most often used for affordable housing. The government’s guidance is that developments of fewer than 10 new homes should not have to contribute towards affordable housing, but some councils nevertheless require it, even from self builders. The council should have local policies or guidance setting out exactly what they require, under what circumstances and from what type and scale of development.
The government does not want the burden of obligations to stop development going ahead altogether. So, if it is simply not viable for you to pay the fee requested by the council, you can prepare and submit a financial viability report to show that only a lower (or nil) payment is possible. There are specialist consultants who can prepare viability assessments. However, there is no automatic exemption from S106 simply on the basis of being a self builder.
Best of luck with your project plans,
Martin Gaine (Build It’s planning expert)