Revised S106 Contributions

As set out in the Affordable Housing Policy and Developers Contributions Supplementary Planning Guidance and Affordable Housing Contributions arising from Student Accommodation Supplementary Planning, there may be instances where Nottingham City Council will accept commuted sums (financial contributions) in lieu of onsite affordable housing (with Student Accommodation this is the preferred option).

• Download to view PDF Affordable Housing Contributions Arising From PBSA SPD

The guidance sets out the methodology for calculating commuted sums and is based on information published online by the Land Registry. The figure is updated annually in April (or as information is available).

For the calendar year to January 2023, the average price of a semi-detached dwelling in Nottingham City was £217,306. A contribution of 25% of this figure, of £54,326 for each affordable dwelling will be taken to be the basis for negotiation.

Further explanation about the formulas used is set out in the SPDs (see links above).  Please use the S106 Estimator for calculating the likely contributions for residential and commercial development.

Affordable Housing Contributions last updated April 2023.

As set out in the Provision of Open Space in New Residential and Commercial Development), there are instances where Nottingham City Council will accept commuted sums in lieu of onsite open space.

The guidance sets out that costs will be updated on an annual basis using the SPONS guide (a price guide for the construction industry).  The figure is updated annually usually on or around 1st April.

The current multiplier for off site contributions is £1,314.32 (updated April 2023) which is used to assess the cost of new open space per person. The contribution that the Council will seek is based on the likely number of occupants from the development based on the following;

Further explanation about the formulas used is set out in the SPDs (see links above).  Please use the S106 Estimator for calculating the likely contributions for residential and commercial development.

Open Space Contributions last updated April 2023.

As set out in the Education Contributions from Residential Development, the Council uses the F07125-National School Delivery Cost Benchmarking - Primary, Secondary and SEN  Schools - Nov 2023 (or such update or other Department for Education recognised report as may replace or supersede it), as the basis for calculating Education Contributions.

• Download to view the Education Contributions from Residential Development Supplementary Planning Document,
• Download to view the F07125-National School Delivery Cost Benchmarking - Primary, Secondary and SEN Schools - Nov 2023

The current costs are set out below.

• £20,946 per Primary child
• £21,235 per Secondary child
• Plus a 7.5% uplift for Special educational needs and disabilities (SEND).

Further explanation about the formulas used, is set out in the SPD (see link above). Please use the S106 Estimator for calculating the likely contributions for residential development.

Education Contributions updated January 2024.

Contributions are used on a variety of initiatives to help secure employment for city residents. These can include;

• providing a skilled bank of operatives to match to vacancies, apprenticeships, and work experience opportunities – also providing upskilling when identified to aid career progression
• assisting residents with barriers into work access opportunities through the provision of employment support, training qualifications and PPE
• assisting developers / contractors to maximise opportunities and benefits for city residents and environment through their Corporate Social Responsibility agendas

Employment and training opportunities are on development sites however other initiatives may be elsewhere in the city, for example Job Fairs, community engagement events, employability workshops, accredited training providers and sector-based work academy programmes.

A percentage of contributions are also invested into the specialist team within the Nottingham Jobs service who align S106 budgets with all Employment & Skills initiatives.  

Education and training costs have been revised in April 2023 by 8% (to reflect RPI from June 2022 to March 2023).  Costs will be revised in and around 1 April each year in line with other cost.

Please use the S106 Estimator for calculating the likely contributions for Employment and Training from residential and commercial development with build costs of over £1million.

Employment and Training last updated April 2023.

Monitoring and Administration Fees

All S106 agreements require monitoring on a regular basis to determine whether any triggers for payment have been reached. These trigger points can include for example commencement, completion or occupation of development.  It is only when these triggers are reached that contributes are required to be paid.  Although the onus is on developers informing the Council when these triggers are met, this is not always the case. 

To cover some of the cost of monitoring and administrating S106 agreements, 3% of S106 contributions are currently top-sliced off to a maximum of £6784 (2023) subject to the maximum cost increasing in line with the Retail Price Index on or around 1 April each year. 

Legal Fees

The council's reasonable legal costs associated with the negotiation, preparation and completion of the s106 agreement are recoverable from the developer. These are not part of the planning obligation itself rather a charge for work done by the Council and they do not therefore form part of the planning obligation calculation.