Authorities ease section 106 terms



A number of local authorities are letting developers pay reduced section 106 contributions or defer payment until the economic outlook improves. Medway council for example has started a flexible payment policy in response to concerns from house builders including waiving interest on late contributions, while Norwich city council is prioritising section 106 contributions where developers cannot afford to pay them. The councils argue that unless they are prepared to take calculated risks ‘they are never going to help stimulate the market’.