Development Contributions And Part V Agreements

Since the introduction of the Planning and Development (Amendment) Act 2002, Part V (social/affordable housing) obligations to local authorities can, by agreement with the local authority in an appropriate case, be satisfied wholly or partially by payment of monies. The question arises as to whether in those circumstances the Part V condition of the planning permission should be treated as a financial condition for conveyancing purposes.

An agreement entered into by the developer with the planning authority pursuant to a Part V condition is not a financial condition, even if the agreement requires the payment of monies. The Part V condition is satisfied when the developer enters into the agreement with the planning authority. If there is subsequently non-compliance with the terms of the Part V agreement, then this is a matter between the planning authority and the developer and does not constitute a breach of the Part V condition of the planning permission.

As the Part V condition is not a financial condition, it does not come within the exclusion of matters of financial contributions or bonds in the standard architect’s opinion on compliance with planning.