Friday, 01 August 2014

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.’

Readers' comments (8)

  • £21m for affordable homes at £350 each = 60,000 affordable homes.

    I think the minister is being a little optimistic here......

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  • Rick Campbell

    Good morning C233, it's Friday -- so perhaps we are in for a glorious pronouncement on the subject later?

    I do like a good laugh to set me up for the weekend especially the thought of "Mr Shapps" (or any government minister for that matter) and "mature debate" being thrown together in the same short paragraph.

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  • F451

    It's on the blog bit, repackaging the non-strategy into a piece of fiction that is quite well written for Shapps (I recognise the irony on me saying that, but I'm not pretending to earn a Minister's wage)

    So I think we are safe from the weekly-shapt; however, there is always the turning housing officers into a police force idea which I bet he wishes he'd thought of.

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  • Sexton

    No backhand allowances from the developers?

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  • F451

    Nope - just the normal forehand smash and grab.

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  • Combine the "presumption in favour of sustainable development" with the financial incentives of the New Homes Bonus Scheme, and what price Greenfield?

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  • F451

    About £9,000 per acre.

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  • Rick Campbell

    Anyone know the size of the land that Flashman 'no lips' Cameron paid £140K plus for?

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