Indexation of S106 agreements - Public forum - Planning Advisory Service (PAS)

At Wakefield we use the Retail Prices Index for non housing payments (though we have used the RICS Road costs engineering index in the past) and for affordable housing contributions we use the House Prices Index maintained by the Land Registry. We have rarely received objections to these indices, even in the current economic climate. We also require the base sum paid in the event of a drop in any of the indices, though we did concede on one site an each way payment for the affordable housing contribution. This site had been a difficult negotiation and there was a real question over the viability of the development in the event contributions in respect of affordable housing were fixed to the minimum. Having said that, in practice it is probably that by the time the development proceeds the index will have risen. Lawrence Handy Wakefield MDC Legal Department

Here at Newcastle City Council, we do enforce RPI (Retail Price Index) on all contributions, albeit of a Highways, Open Space, Infrastructure etc nature. Upon receipt of the Contribution, the RPI is calculated - generally from the date of the Agreement until receipt of monies and whilst the Developers slightly object - they do pay as agreed at the time of negotiations.