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What is a section 106 agreement?

A Section 106 agreement is a list of planning conditions that must be fulfilled by a company wishing to build a scheme anywhere. For example, a scheme of 10 houses in a town may require a contribution to local roads so that increased traffic flow can be supported, or towards nearby open space or play facilities. For rural schemes the s106 will include clauses which state that the housing will always remain affordable and for the benefit of local people