Section 106 Agreements in Wales

Section 106 agreements are a vital component of the town and country planning process in Wales. Under the terms of these agreements, developers must agree to carry out certain actions or provide community benefits in return for the granting of planning permission. In this article, we will provide an overview of what section 106 agreements are and how they work in Wales.

What is a section 106 agreement?

A section 106 agreement is a legal agreement between a developer and a local planning authority. This agreement is made under Section 106 of the Town and Country Planning Act 1990 and is designed to secure benefits for the community that would not otherwise be provided by the developer.

The types of obligations that can be covered by a section 106 agreement are wide-ranging and can include:

• Provision of affordable housing

• Contributions towards public open space and recreation facilities

• Funding of local transport infrastructure

• Contributions towards education and healthcare facilities

• Financial contributions to improve local environmental and cultural amenities

How do section 106 agreements work in Wales?

In Wales, section 106 agreements are a key requirement for developers seeking planning permission for major developments. The terms of the agreement are negotiated between the developer and the local planning authority, and can be tailored to the specific needs of the local area.

Once the terms of the agreement have been agreed, the developer must pay for the services or facilities outlined in the agreement before construction work can begin. Failure to comply with the terms of the agreement can lead to fines or legal action.

Why are section 106 agreements important in Wales?

Section 106 agreements are vital for ensuring that major developments provide real benefits to the local community. Developers are required to make significant contributions towards local services and amenities, which can have a lasting positive impact on the area.

In addition, section 106 agreements can help to ensure that the benefits of development are distributed fairly across the community. For example, affordable housing provisions can help to ensure that local residents are not priced out of their own area.


Section 106 agreements are a vital part of town and country planning in Wales. By requiring developers to provide tangible benefits to the community, these agreements help to ensure that major developments are balanced and sustainable. As such, anyone involved in the planning process in Wales should be familiar with section 106 agreements and their implications.