Latest news

New Homes Bonus scheme revamp confirmed

Published: Thursday, 22nd December 2016

Javid announces changes to the New Homes Bonus scheme including the introduction of a national baseline for housing growth of 0.4 per cent...

Communities Secretary Sajid Javid has announced changes to the new homes bonus scheme, including the introduction of a 'national baseline for housing growth', beneath which the incentive will not be paid.

However, the administration has decided not to push ahead with plans to withhold the incentive for 2017/18 from local authorities who have not submitted a local plan.

The Department for Communities and Local Government (DCLG) has indicated, though, that it will revisit the case for withholding the new homes bonus from areas “not delivering on housing growth from 2018/19."

DCLG has confirmed that from next year it will introduce a national baseline for housing growth of 0.4 per cent. Below this, the new homes bonus will not be paid. "This will ensure rewards are given for additional housing, rather than just normal growth" the department said.

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.

DCLG has also confirmed that there will be a reduction in the number of years in which payments are made: from six years to five years in 2017/18 and for four years from 2018/19.

Javid insisted: "This will release important funding for adult social care." The changes to the regime surfaced as the DCLG published provisional allocations for 2017 to 2018.

Read the Secretary of State for Communities and Local Government statement to Parliament

Roger Milne