S106 Management is a specialist viability consultancy, created by developers for developers. Between 2008 and 2011, we found that the sites we were actually working on were encountering demands from the Local Planning Authorities for affordable housing. This hands-on experience of demonstrating site viability and negotiating with the LPAs lead to the formation of S106 Management as you see it today, and enables us to provide other property developers with unique perspectives and expertise.
In 2011 we completed around 10 reports. In 2023, we now complete around 300 reports per year – all for developers.
We have expanded over the last 10 years, and now benefit from the expertise of chartered surveyors, town planners, solicitors, andarchitects, and an extensive network of planning professionals.
With over a decade of experience in creating expert viability assessments, advising on complex planning obligations, and negotiating with LPAs, S106 Management is now one of the most effective viability consultancies in the UK. We have worked with over 600 clients on more than 800 developments, achieving average savings of £100,000 per report for developers.
Section 106 planning obligations are paid for through the uplift in site value generated by the grant of planning permission; our core service is identifying whether this assumed increase in value exists.
The critical metric of this process is that the Residual Land Value of your development must exceed the Benchmark Land Value.
We use our expertise to help unlock housing capacity in developments which have stalled, been rejected, or may not otherwise come forward due to unviable developer contribution assumptions.
Local Plan policies aimed at delivering Affordable Housing and Infrastructure are informed by the Planning Authorities’ own Viability Appraisals. These rely on broad development assumptions and site typologies to model, in generic terms, the uplift in land value generated on the grant of planning permission. These Viability Studies are designed to ensure that Policies are realistic, and the total cumulative cost of all relevant policies do not undermine deliverability of sustainable development, providing a useful set of assumptions that can be used in site-specific viability studies. However, they are often reductive and cannot fully capture site-specific circumstances.
All LPAs accept that contributions can only be provided where it is economically viable to do so, and a profit margin of 15-20% is considered a suitable return for developers (NPGV 2019).
If the viability of your development is threatened by Section 106 contributions, please contact us to discuss your options.
We present your case in a robust manner, using clear, up-to-date, appropriate and verifiable evidence. We examine the necessity and viability of Section 106 requests by Local Planning Authorities (LPAs), and ensure that the scale of payments allows a viable profit margin for developers.
Our viability reports can assist with planning applications for development of Brownfield, Greenfield, Rural Exception sites, Enabling Development heritage assessments, CIL relief, late-stage viability reviews and replacement or variation of existing S106 agreements. We also provide early stage modelling to justify and inform scheme evolution and increase the profitability of your development.