Developers may be asked by the local planning authority as part of their planning obligations and site mitigation to pay a community infrastructure levy i.e. make a financial contribution to help fund local infrastructure, facilities and services, such as public open space, education, highways, recreation and affordable housing. While these can be viewed as positives, there can also be an impact on those who are seeking to purchase a property subject to an S106 agreement.
Through Section 106, numerous affordable properties have been built all over the UK, helping those with lower incomes get their foot on the property ladder. However, the mortgage application process for a Section 106 property can be more complex.