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New Homes Bonus

Volume 557: debated on Friday 1 February 2013

I refer to my written statement of 10 December 2012, Official Report, columns 1-2WS announcing provisional new homes bonus allocations for local authorities.

The representation period closed on 7 January 2013. In addition to the 29 authorities which we wrote to concerning empty homes data, we received a further nine representations. These have been taken into account in finalising the figures.

Commenced in April 2011, the bonus is based on the council tax of additional homes and those brought back into use, with an additional amount for affordable homes, and is paid for six years. It ensures that those local authorities which promote and welcome growth can share in its economic benefits, and build the communities in which people want to live and work.

The bonus will be paid in respect of 160,000 homes from October 2011 to October 2012 including 142,000 extra homes and 18,000 long-term empty properties brought back into use. The allocations also include an affordable homes enhancement, which totals £20 million in respect of 58,000 new affordable homes.

This means we will pay over £668 million of new homes bonus to local authorities in England. This includes the third instalment of £199 million in respect of year 1, the second instalment of £233 million in respect of year 2, and £236 million for housing growth in year 3.

These allocations bring the total amount of funding awarded under the new homes bonus since it began in April 2011 to £1.3 billion. This total recognises delivery of over 400,000 homes, and over 55,000 empty properties being brought back into use.

The Department is writing to local authorities confirming their final allocations and I have written to all Members of Parliament and local authority leaders in England.

A full list of the allocations is being placed in the Library of the House. Further information on the bonus can be found at: