We have put in a planning application to build a four-bedroom house. The council has said that under a section 106 agreement, we have to pay £1,250 upfront, and if planning is granted, another £20,000 towards community expenses. We haven’t heard of this before. Is it normal?

JS, Wokingham, Berkshire

There is nothing unusual about councils demanding a financial contribution from small self-builders and national developers towards council services such as education and leisure activities. However, the threshold at which a section 106 is imposed, and how much is charged, varies widely from council to council.

Some councils do not seek section 106 contributions for single dwellings; some charge relatively small amounts, such as £1,100 per house; others, for example Suffolk Coastal, operate a simple system where the contribution is paid in advance of the application being decided, but the agreement provides for a refund if permission is refused. You should not have to make any upfront payments that are not refundable in the event of permission being refused.

Michael Haslam OBE is a past president of the Royal Town Planning Institute and a director of Michael Haslam Associates, hmhaslam@btopenworld.com

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