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Section 106

A Section 106 Agreement is a legal document which places specific conditions on a property or land. This document ensures that the property remains an affordable property each time it is sold. There are three important clauses contained in a Section 106, which govern who can buy and occupy the property.

Local Occupancy Clause

The purpose of this clause is to make sure that it is only people with a local connection who can buy the property. There are some variations but generally most Section 106's will now say that a person must have lived in the area for at least three years. People who have a permanent job (over 16 hours per week) or firm job offer may also be considered.

Housing Need

An applicant for affordable housing must be in 'Housing Need'. This means they cannot afford to buy on the open market. We work out whether an applicant qualifies by looking at their: income, savings, equity in any property they own, wages etc. We then compare this to a table of property values we have carefully compiled from independent property surveyors, to see if they qualify.

Use of the property

The property must be your only or principal home and not used as a 'buy to let', second home or holiday home. 


The Section 106 Agreement has evolved over time, as such there are variations between properties. This Agreement is a legal document, we and the owner must abide by the terms contained within the document. We assess applications case by case and refer to the Section 106 Agreement specific to the property of interest when processing an application.