Published: Thursday, 7th January 2016
Ministers have begun consulting on proposals to reform the New Homes Bonus regime.
The reforms could mean axing payments to planning authorities without a local plan and reducing payments from the current six year-period to just four or even less. Also under consideration is a reduction in payments for housing won on appeal.
In addition the consultation paper asks if there should be a baseline above which payments would be made (this might be based on a national figure or average local output over a number of years).
The Government highlighted it would be reviewing the regime as part of announcements made during the autumn statement last month.
The consultation document makes it clear that changes won’t come into force until 2017/18 and will be designed to “focus” options on the delivery of new homes and “freeing up resources to be recycled within the local government settlement to support authorities with particular pressures, such as adult social care, following the outcome of the 2015 Spending Review”.
Meanwhile the Department for Communities and Local Government has published provisional allocations for councils in England. In total some £293m worth of payments will be made in relation to 186,575 net additions to the housing stock (October to October) and 2,253 empty homes brought back into use.
Councils receiving the largest payments following the most recent year’s delivery are three in London ( Brent, Wandsworth and Tower Hamlets) as well as Wiltshire and Leeds.