Chloe SmithMP for Norwich North
Chloe SmithChloe Smith today encourages local organisations to respond to the Government's New Homes Bonus, recently announced by the Minister for Housing, the Rt Hon Grant Shapps MP.
The Bonus, which is now open for consultation, aims to provide the incentives and rewards for councils and communities who wish to build new homes in their area. The Department of Communities and Local Government has set aside almost £200m for the financial year 2011/12 and £250m for each of the following three years, along with formula grants, for the initiative.
Under the existing system if a local authority grants the building of homes in the area it governs the local community sees little of the economic reward. As a result residents anticipate further strain on public services and reduced amenities when new homes are built. They and their elected local councillors then quite naturally object too much of the proposed development. The new scheme will see the Government match fund the additional council tax raised when a new home is built and a property is brought back into use, with an additional amount for affordable homes.
The consultation on the New Homes Bonus seeks views on the implementation of a powerful, simple and transparent system for incentivising local authorities to increase their housing supply. This follows the Coalition Agreement to provide incentives for local authorities to deliver sustainable development, including for new homes and businesses.
Chloe Smith urges local interested parties to respond by 24th December, and said:
"I welcome this announcement by the Minister for Housing. I think that it will provide welcome financial relief to local authorities and enable them to build without fear of reducing budgets in other areas. It is important to get the detail right, however, and I would like to see local views from any interested parties be taken into account."