About Section 106 Management
S106 Management only provide consultancy advice to landowners and developers, so we are completely free from conflicts of interest with Local Planning Authorities.
We examine the necessity and viability of requirements for Section 106 affordable housing by Local Planning Authorities (LPAs) by reference to their own policy documents, the National Planning Policy Framework (NPPF), the Community Infrastructure Levy Regulations (rules 122 and 123), and an extensive database of Planning Appeal Decisions.
All LPAs (without exception) are obliged to accept that affordable housing can only be provided where it is economically viable to do so. It is essential to present your viability case in a robust manner using clear, up-to-date, appropriate and verifiable evidence.
Our reports are not only effective in mitigating Affordable Housing contributions, they can be used to provide justification for increased development densities, and to justify the housing tenure mix in Rural Exception Sites.
S106 Management is a consultancy established in 2011 by Robin Furby who also heads a successful property development company. After qualifying as a solicitor in 1985 and following 10 years in private practice Robin proceeded into property development. His 30 years of experience in site acquisition, planning negotiation and construction, provide a rigorous and informed perspective to viability issues.
Robin’s knowledge in the preparation of viability statements was gained initially through the requirements of his own business. S106 Management was set up in 2011 to share this expertise and since its inception the business has successfully completed over 500 viability studies throughout the UK, saving our clients millions of pounds.
The preparation of viability assessments in the context of Section 106 affordable housing appears beguilingly straightforward, but to avoid expensive mistakes it should be recognised that this examination is a task requiring not only a solid grasp of the complex figures involved but also a contextual understanding of the prevailing law and planning practice that only a specialist consultancy can offer.
One of the key areas in Viability reporting is the ‘Benchmark Value’, from which the viability of a project is to be judged. The RICS Viability Guidance (GN94/2012) is clear that this Benchmark should be the ‘Market Value’ of the development site.
The assessment of Market Value is a specialised task, and should be determined using evidence from comparable transactions. The Existing or Alternative Use Value of the site, as it stands before planning permission is granted, may assist in answering this , but is rarely determinative of the question.
The Benchmark value of a site is rarely straightforward, so we are pleased to have Chris Barraclough MRICS join the S106 Management team. Chris brings with him 5 years of RICS Red Book Valuation experience gained at Vickery Holman and Alder King as an RICS Registered Valuer, providing reports for the main UK banks for secured lending across all commercial and residential property types.
Chris’s professional career spans three decades, including experience at The Crown Estate, Morgan Grenfell Laurie, Wright & Partners. Over the last 15 years Chris has been involved in a number of development and investment projects, advising clients on a wide range of issues to determine the viability of specific schemes. These include rural exception, green and brownfield sites, purpose built student accommodation and land assembly for food store development.
Increasingly, the process of examining viability interrelates with other substantive planning policy issues and procedures. In cases where these matters are of primary concern, S106 Management relies on expert advice from Chris Dent MRTPI.
Chris is qualified both as an Architect and Town Planner and brings 30 years of experience to the benefit of our clients. www.chrisdentarchitect.co.uk Chris’s skills are invaluable when navigating the tortuous planning process, and deciding which of the many application and appeals procedures are the most appropriate to your individual circumstances.
Once the principal terms of the S106 agreement are negotiated by S106 Management we would be happy to recommend Tom Flounders of Needle Partners Limited to complete the agreement. Needle Partners are a highly experienced commercial property practice that is well versed in the legal requirements of S106 agreements. The friendly and knowledgeable staff at the practice will check the deeds and plans and contact the local planning department to obtain the S106 document. Once this is received we will check that the document reflects the terms that have been agreed and offer any pertinent legal advice. In addition, we will issue the Certificate of Title to the planning authority on your behalf.
By working with S106 Management and Needle Partners you have the benefit of independent property experts collaborating on your behalf. Not only will you reduce your affordable housing liability but you will also have the reassurance of knowing that the legal side is properly documented, thereby removing the hassle , and leaving you free to do what you do best – develop property.
As commercial and residential property specialists Needle Partners also offer a broad range of services you may be interested in:
• Sale and lease back
• Site set up
• Telecoms and renewables
Find them at www.needlepartners.com, or on LinkedIn or Twitter
Whether you are a Landowner or a Developer, we would be happy to have an informal chat with you (free of charge) to see how we might help you.
The cost of a full Section 106 viability report is normally in the range of £2,500–£7,500 depending on the level of research required. Savings often amount to tens, if not hundreds of thousands of pounds.
While every case is different, our Case Studies illustrate some of our past successes.