Planning Obligations and Affordable Housing SPD

The draft SPD refers to monitoring fees for Section 106 agreements but does not specify the fee levels or the methodology used to calculate them. To improve clarity and enable developers to plan effectively, the SPD should set out either the actual monitoring fee amounts or a clear formula explaining how the fees will be determined.

It would also be helpful for the SPD to explain the basis for these charges, including which monitoring activities, officer time, and administrative processes the fees are intended to cover.

While the SPD notes that monitoring fees will be related to officer time, it does not explain how the required time will be assessed. The SPD would benefit from a more transparent and structured approach to scaling monitoring fees in proportion to the complexity of each development.
This could include reference to factors such as:
- the number of dwellings or scale of development;
- the number and type of financial and non‑financial obligations;
- whether the development is phased and subject to multiple trigger points; and
- any other characteristics likely to influence the duration or intensity of monitoring activity.
- Providing this detail would ensure that fees are proportionate, consistent, and clearly understood by applicants.

It is recommended that the SPD sets out the specific circumstances that would trigger the return of any unspent financial contributions. It is suggested that for clarity and consistency with established practice elsewhere, the SPD should state that if a financial contribution is not spent within 10 years of receipt, or if the need for that contribution no longer exists, the remaining balance, together with any accrued interest, will be repaid to the developer.

This ensures that contributions remain directly linked to the specific mitigation for which they were secured and provides transparency and reassurance for developers.

In summary the SPD should provide greater transparency and detail on how monitoring fees are set, and explain what factors of a development influence monitoring fee levels so that these can be factored into financial planning for development at an earlier stage. It is also considered that the SPD should confirm that unspent contributions will be returned to the developer after a set time period (for example 10 years) or if no longer required. Together, these revisions would ensure the SPD offers clarity, fairness, and consistency in the application of planning obligations.