Austin Macauley 18 December 2014

Report reveals mixed views on New Homes Bonus as scheme receives £1.2bn boost

Less than a third of planning officers think the Government’s New Homes Bonus scheme has brought a more ‘strategic and coordinated approach’ to the building of new homes.

The news came in an evaluation released as housing minister Brandon Lewis announced a further £1.2bn would be invested in the initiative, which has so far provided £3.4bn for councils to build new homes.

The study found the scheme is ‘largely matching the distribution of housing need’. But as a consequence the bulk of funding has benefitted London and the south east, to the detriment of the north of England.

Some 49% of planning officers said they felt the New Homes Bonus was a ‘powerful incentive’ to help facilitate housing growth while a quarter disagreed. Attitudes to the scheme varied widely, largely reflecting the winners and losers in terms of distribution of funding. Of those at county councils, 46% did not think it had a significant role.

Figures released today show this year the scheme has contributed to 154,000 newly built homes and conversions, including more than 42,000 new affordable homes. It has also brought over 10,000 empty homes back into use.

Housing minister Brandon Lewis said: ‘Councils have received more than £3bn for their part in getting Britain building, and as a result housing construction has reached its highest level for seven years.

‘All local authorities are free to spend the money however they like to benefit their local communities – whether that’s supporting frontline services, providing new facilities or freezing council tax.’

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