Development contributions (under SPLUMA) Agreements: What Developers Need to Know

Development contributions (under SPLUMA) agreements are legal obligations attached to planning permission, binding developers to deliver specific outcomes — affordable housing, financial contributions, infrastructure works. They can swing scheme viability either way.

What's covered

• Affordable housing (% of units or off-site contribution)
• Education contributions (per dwelling, based on policy)
• Highways improvements
• Open space provision or maintenance
• Healthcare contributions
• Public art
• Travel plans and bus services

Negotiation

S106 obligations are negotiated case-by-case but anchored to local plan policies. Larger schemes face more obligations; smaller may be exempt or contribute via bulk services contributions.

Viability appraisals

Where full S106 obligations would render the scheme unviable, developer can submit a viability appraisal. If accepted, obligations may be reduced. Process is technical and adversarial — specialist advice essential.

Affordable housing

Typical South African requirements 20–35% of units (higher in London). Tenure mix specified (social rent, intermediate, shared ownership). Sometimes off-site contribution accepted.

Triggers

S106 obligations crystallise at specific points (commencement, occupation, etc.). Missing a trigger can prevent occupation or sale.

bulk services contributions alternative

bulk services contributions is a flat per-m² charge in some authorities. bulk services contributions covers some items S106 used to; S106 still used for site-specific items.

MCFAR coordinates engineering aspects of S106 compliance.

Frequently Asked Questions