London Boroughs to recieve £40m ‘New Homes Bonus’

Data released from CLG this week indicates that London Boroughs will receive just under £40 million in New Homes Bonus payments in the first year of the scheme, reflecting the 26,000 new units built in London between October 2009 and 2010. Extrapolating this data for new housing completions, CLG anticipates that London Boroughs will receive around £230 million over the six years that the New Homes Bonus will operate for.

This latest Future of London Policy Focus paper provides more detail on the New Homes Bonus mechanism, and what it might mean for London.

Here’s a reaction from our breakfast seminar on 22 February questioning the degree to which it will benefit London boroughs.

Ben H
Director, FoL

Comments

  1. The UK is suffering from a serious shortage of new homes, so this news is warmly welcomed by most if not all in the housing industry. However, it falls far short of compensating for the 60% cut in the Housing Budget, and undoubtedly places increased stress on budget stricken local authorities.

    • Hi Linden – I think many across the sector share your view – particularly given that the Government seems to be implying that NHB revenues can somehow also be used to help provide affordable housing and other items. Given the funding situation, what policies would you like to see implemented to help increase the number of new homes being built?