Planning gain and section 75 agreements are terms that are familiar to those in the real estate and planning industry. These agreements are designed to promote community benefits from new developments and ensure that the developer contributes to the local community.
The concept of planning gain is also known as ‘developer contributions.’ It refers to a requirement placed on developers to contribute financially or in-kind to the local community as a partial offset to the negative impact of a new development. This process is typically carried out through a section 75 agreement.
A section 75 agreement is a legal document between the local planning authority and a developer. It sets out how the developer will contribute to the community and what they will provide in return for the permission to build a new development. The agreement can cover a wide range of issues, such as infrastructure improvements, affordable housing provision, public open space, and contributions to education and healthcare facilities.
Developers are required by law to enter into a section 75 agreement with the local authority to ensure that their development complies with the planning policies of the local authority. Failure to reach an agreement can result in the development being refused planning permission.
The contributions made by developers can take many forms. For example, a developer may be required to contribute financially towards the construction of a new school or healthcare facility. Alternatively, they may be required to provide a certain number of affordable homes within the development or make a contribution towards the maintenance of public open spaces.
The aim of these agreements is to make sure that new developments benefit the local community, in addition to the developer. This helps to ensure that any negative impacts of a new development are minimized and that the local infrastructure is enhanced.
In conclusion, planning gain and section 75 agreements are a vital part of the planning process. They help to ensure that new developments are not only beneficial to the developer but also contribute to the local community. As a result, developers must take these agreements seriously and work with the local authority to reach an agreement that benefits everyone involved.