Developer Contributions

Developer contributions are payments made by developers to help cover the cost of improving existing infrastructure or building new facilities.

This can include:

• schools
• community facilities
• transport improvements

We only seek these contributions where existing infrastructure and facilities cannot accommodate the additional pressure created by new development. Contributions do not address existing deficiencies – they manage the impact of development.

When and how you pay

Developer contributions are separate from your planning application fee. The application fee pays for the assessment of your application. It is not a direct contribution to services or infrastructure.

If developer contributions are required, they are usually secured in one of two ways:

• Upfront payment - you must pay before we issue your decision notice. This is arranged with your planning officer.

• Section 75 Legal Agreement – for larger developments or those with on-site affordable housing, a legal agreement called a Section 75 is usually required. This agreement:
  • sets out when payments will be made
  • is tied to the land, so if the site is sold, the new owner becomes responsible for any outstanding payments.
  • normally requires a solicitor

More detailed guidance

• Developer Contributions Supplementary Guidance - sets out Highland Council's approach to mitigating the impacts of development on services and infrastructure
• Highland Delivery Programme - outlines specific contributions required in different areas

Specific additional guidance:

• Area Local Development Plans
• Development Guidance includes area specific briefs
  • City Centre Development Brief covering public realm, travel, parking, affordable housing and open spaces within Inverness
  • Torvean and Ness Side Development Brief and Inverness East Development Brief requiring contributions towards major infrastructure for the west and east of Inverness
  • Inshes and Milton of Leys Development Brief and Inshes and Raigmore Development Brief requiring contributions towards major infrastructure for south of Inverness
  • Muirtown and South Kessock Development Brief and the Longman Core Development Brief - which look to regenerate these parts of Inverness

Developer contributions for proposals within the Cairngorms National Park area may differ. See the Cairngorms National Park Local Development Plan for details.

Legal and National Policy considerations

National Planning Framework 4, Policy 18: Infrastructure First requires that planning obligations should meet these tests:

• be necessary to make the proposed development acceptable in planning terms
• serve a planning purpose
• relate to the impacts of the proposed development
• fairly and reasonably relate in scale and kind to the proposed development
• be reasonable in all other respects

This reflects the legal requirements established by case law and the Scottish Government guidance in Planning Circular 4/2025 Planning obligations and good neighbour agreements: guidance