Government to allocate £200m to bonuses for new homes

Posted: 18 Feb 2011 13:05:23 GMT

Housing minister Grant Shapps has announced details of a scheme to encourage building.

More new homes could be made available across the UK as the government has announced plans to invest in housebuilding.

Housing minister Grant Shapps revealed £200 million will be shared between more than 320 local authorities with the aim of increasing stock.

Communities will be able to choose how the bonuses will be spent and it is hoped it will encourage developments to be backed, rather than opposed.

"Telling communities what homes they need and where they should be built has had catastrophic consequences," said Mr Shapps. "We need to get the country building again."

The incentive will be awarded in the form of a bonus for each new home built, with the council tax raised matched by the government over the first six years.

Earlier this week, Timothy Lambert of Ducalian noted demand for new homes has increased in part due to the incentives being offered by developers.
 

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