When a development project gets the green light in England, it often comes with strings attached – in the form of legal agreements. These agreements ensure developers contribute to local infrastructure and abide by certain conditions for the public good. In this brief overview, we explain some of the usual legal agreements in planning and highways:

  • Section 106 agreements (planning obligations)
  • Section 278 agreements (highways works on existing roads)
  • Section 38 agreements (adoption of new roads)
  • Sewage and waterway agreements (drainage and infrastructure)
  • Historical section agreements (still encountered in practice)

Each of these “section agreements” is named after a section of a law – for example, Section 106 of the Town and Country Planning Act 1990 for planning obligations, or Sections 38 and 278 of the Highways Act 1980 for road agreements.

Section 106 Agreements – Planning Obligations

Section 106 agreements are legally binding contracts between developers and local planning authorities. They secure contributions or commitments that make a development acceptable in planning terms. These might include:

  • Affordable housing provision
  • Financial contributions to schools, transport, or community facilities
  • On-site infrastructure or amenity delivery
  • Restrictions on land use or occupancy

These obligations “run with the land” and remain enforceable until formally discharged.

Section 278 Agreements – Works on Existing Highways

Section 278 agreements allow developers to carry out or fund improvements to existing public highways. Common examples include:

  • New junctions or access points
  • Traffic signal installations
  • Road widening or safety upgrades

These agreements are made with the highway authority and ensure that off-site highway works are delivered to the required standard.

Section 38 Agreements – Adoption of New Roads

Section 38 agreements relate to new roads built within developments. They allow the highway authority to adopt and maintain those roads once constructed to approved standards. This ensures residents benefit from publicly maintained streets and services.

Sewage and Waterway Agreements

Developers also enter into agreements with water and sewerage companies, including:

  • Section 104 agreements (Water Industry Act 1991) for sewer adoption
  • Connection agreements for linking to public water or sewer networks
  • Waterway and drainage consents with bodies like the Environment Agency or Canal & River Trust

These ensure proper drainage, flood risk management, and integration with existing infrastructure.

Historical Section Agreements

Older developments may still be subject to:

  • Section 52 agreements (Town and Country Planning Act 1971) – predecessors to Section 106
  • Legacy road or drainage agreements under earlier legislation

These remain enforceable unless formally discharged and should be reviewed during land transactions or redevelopment.

Need Help?

At Wollens Solicitors, our planning and property team can assist with all aspects of these legal agreements – whether you’re negotiating a new Section 106, seeking to discharge historic obligations, or navigating sewer and highway adoption. If you’re a developer, landowner, or buyer dealing with planning-related legal matters, we’re here to help.

Speak to Simon Rowland

Simon is a Paralegal at Wollens and can advise you. Contact Simon via email simon.rowland@wollens.co.uk or call 01392 539199.

Simon Rowland - Wollens Solicitors Devon

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.

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