Planning obligations secured by S106 agreements or unilateral undertakings are required to make developments acceptable in planning terms; mitigating any harm caused by the proposed development.
Such obligations are entered into by parties with an interest in land (such as a developer/owner) and the Local Planning Authority (‘LPA’). Planning obligations cover a variety of issues, typical examples include restrictions on the occupation of affordable housing and the provision of financial contributions to be used by the LPA for public open space or educational facilities.
Can they restrict my parking permit application?
An issue which has been increasingly raised within Greater London is whether or not S106 Agreements can legally impose restrictions on applications for parking permits.
The Court of Appeal case of Khodari provides key guidance on this point. In Khodari the LPA sought to prevent those occupying flats (the development) from applying for parking permits on the highway.
The S106 defined “the Land” as the building. The Court of Appeal ruled that applying for a parking permit was “not [the] use of any particular flat…but use of the highway for parking”. The parking permit restriction was therefore not capable of enforcement under S106.
The Greater London Council Act 1974
Crucially the Khodari obligation was also made under another statutory power, namely S16 of the Greater London Council (General Powers) Act 1974. S16 allows for agreements to be made “in connection with the land.” The Court affirmed that this “connection” is widely interpreted and there was a sufficient “connection” observed between the residential flats and the parking permits.
What does this all mean for parking permits?
The key message from Khodari therefore remains that LPAs in Greater London can continue to impose obligations that restrict applications for parking permits so long as the correct legislation is used.
R (Khodari) v Royal Borough of Kensignton and Chelsea Council and another  EWCA Civ 333