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Confirmed revamp for New Homes Bonus scheme

by Paul Addison on January 11, 2017 No comments

Amendments to the New Homes Bonus scheme have been revealed by Communities Secretary, Sajid Javid.

The scheme will include the introduction of a ‘national baseline for housing growth’ of 0.4 per cent, beneath which the incentive will not be paid.

Having said that, it has been decided by the administration not to push ahead with plans to withhold the incentive for 2017/18 from local authorities who have not submitted a local plan.

It has been suggested by the Department for Communities and Local Government (DCLG), that it will revisit the case for withholding the new homes bonus from areas “not delivering on housing growth from 2018/19.”

It has been confirmed by DCLG, that from next year onwards, it will be introducing a national baseline for housing growth of 0.4 per cent, below this, the new homes bonus will not be paid.

The department had the following to say:

“This will ensure rewards are given for additional housing, rather than just normal growth”

Under the scheme, the government matches the council tax earned by local authorities from each new home built, converted or brought back into use over a six-year period.

It has also been confirmed by DCLG, that a reduction in the number of years (from 6 years to 5 years in 2017/2018 and for 4 years from 2018/2019) in which payments are made will be put in place.

The following was insisted by Javid:

“This will release important funding for adult social care.”

The DCLG publishing provisional allocations for 2017 to 2018, led to the mentioned changes emerging.

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Paul AddisonConfirmed revamp for New Homes Bonus scheme

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