Councils receive bonuses for building new homes
Councils in England will receive extra money for every newly built home, as part of a new government programme.
The New Homes Bonus scheme, which aims to ease the current issues with housing shortages, will see the government match the council tax raised on each new property for six years, which could lead to thousands of pounds of extra funding.
Most homeowners live in B or D band properties and pay £1,439 in council tax each year. If a local council agreed to have 100 new homes built which were in the 'Band D' category, they would be entitles to £863,400 of extra central government funding, over a period of six years.
Housing minister, Grant Shapps, said the incentive would be used to boost housebuilding, which is at is lowest level since the 1920s. He said the incentives were necessary, as past housebuilding targets had failed to result in an adequate number of new homes being built.
If the programme is approved, the scheme will provide a much needed boost to building jobs recruitment across the country.
Shapps said the incentive would "return control to local people." He told The Telegraph: "With house-building falling to its lowest level since 1924 under the previous Government, action is needed now to build the homes the country needs.
"It's why I have confirmed that those councils who go for growth by providing planning permission now will reap the rewards. So I urge councils to seize the moment and open up a debate with their communities now about the new homes they need and how they would use the new Bonus," he added.
Author: Hannah McLaverty-Williamson
Keywords: building jobs