The S106 Burden Ratio measures the financial impact of Section 106 planning obligations on a development’s Gross Development Value (GDV) or expected revenue. It reflects developer contributions towards affordable housing, infrastructure, or community benefits and their effect on a scheme’s profitability. A higher ratio signals increased cost pressure, potentially reducing returns and affecting lender decisions, Loan to Value (LTV) calculations, and refinancing options. Within UK property development finance, assessing the S106 Burden Ratio is essential for managing risks and ensuring that planning obligations remain proportionate and manageable throughout construction and funding stages.
This sits beneath Planning & Legal Risk, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside CIL Liability Ratio, as both are closely related measures used to assess similar aspects of performance or risk.
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