Affordable Housing in the UK and Section 106


In 1990 The Town and Country Planning Act was passed in the UK and since then it has had a profound impact on affordable housing in the UK and the way that land developers do business. For developers who fail comprehend and take into full account all aspects of this piece of legislation, it has in fact made their work more difficult.


Savvy Developers & Section 106


On the other hand, for developers who have made the effort to study what’s contained in this rather complex piece of legislation their goals of building housing developments in many cases has become easier. You see, the fundamental principles behind section 106 have been tried and proven prior to 1990 in the U.S., with one noteworthy difference.


Understanding what it all Means


That is that in the U.S., the legislation was enacted on local levels as community and county ordinances, whereas in the U.K. it was enacted on a national level. In simple terms, it allows cities, towns, and community planning boards to sign legally binding contracts with developers as part and parcel to an overall agreement allowing them to build in their communities.


A New Way of Getting Clearance on a Project


So what does this mean in real terms if you have your eye on tract of prime land somewhere in the UK that you would like to develop? It means that you’re going to have to do more than you may have had to do in the past to get the planning board to sign off on your venture, and it will all be hashed out in a complex negotiating process.


Where Does Affordable Housing in the UK Fit in?


So how does this all relate to affordable housing in the UK? The fact is that it factors in far more than many developers fail to realize, and this is for one very fundamental reason. That reason is that terms of section 106 allow for elected officials other than planning board members to take part in the negotiating process for their project, and people who buy or rent affordable housing in the UK vote.


A New Genre of Professional Consultants and Negotiators


Hence; this in turn has led to the debut of a brand new genre of professional consultant and negotiating service. Firms that specialize in negotiating at the behest of land developers who are planning projects and are seeking clearance. So should you consider procuring the services of one of these firms?


Consider it then By All Means Do it


The simple answer to that question is yes you should consider it, and then after you have considered which firm to go with you should hire them. You see the last person that the governing entities want to deal with is the actual developer, or a representative that is a permanent employee of a developer.


Represent Yourself and You Have a Fool for a Client


What they’re looking for is a non-connected party who has some previous experience in the 106 negotiating process and a track record of successful negotiating endeavors. Going it alone is for the most part going to result in a deadlock, or unreasonable demands being tabled by the city, town, or community representatives you will be going up against.

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