Local authorities share £430m building bonus
Councils will receive £430 million of incentive payments for allowing the development of homes in the second year of the new homes bonus scheme.
Three hundred and fifty three councils will receive the payments for 159,000 homes built or brought back into use during 2010/11, as well as the second year of payments for homes added during 2009/10.
Under the new homes bonus councils receive a payment equal to the council tax they receive from a property for six years after it is built. There is an additional £350 payment for affordable housing, and empty homes brought back into use are also eligible.
The provisional second year allocation, which was announced by housing minister Grant Shapps, shows £21 million has been set aside for the extra payments for affordable housing.
The idea behind the scheme is that local people benefit from new homes because the council reinvests the additional funding it receives in services for the community.
Mr Shapps said: ‘There is a culture shift taking place across the country - communities that are going for growth are reaping rewards for their local area, and councillors can now lead a mature debate about the benefits of development.’