Homes scheme could reduce empty property


The Government has started consulting on key detail of its proposed New Homes Bonus scheme which could be extended to include long-term empty property.

Under the scheme the Department for Communities and Local Government will match the council tax raised from new homes for the first six years. The DCLG is currently proposing that the bonus should be spilt 80:20 in two-tier areas outside London Developers and house builders have welcomed the initiative but countryside campaigners have sounded a warning note.

The chief executive of the British Property Federation, Liz Peace, said: “We are delighted the Government is considering extending the New Homes Bonus to long-term empty property. Returning empty property to use is very resource-intensive for local authorities and this additional source of funding comes just at the right time with redevelopment often more viable than new build.”

The executive chairman of the Home Builders Federation, Stewart Baseley, said: “The country is facing an acute housing crisis and it is imperative we have a planning system that delivers sufficient land for the homes we need. The New Homes Bonus is an essential part of the new incentive-based structure and we welcome the commitment to a simple, easy to understand system.”

Fiona Howie, head of planning at the Campaign to Protect Rural England, said: “For many councils with budget black holes following the spending review, the New Homes Bonus is likely to be a temptation that is hard to resist. It’s important therefore that developers aren’t able to take advantage of cash-strapped councils, by proposing development that we live to regret. The reuse of brownfield land and protection of green fields is vital. We are pleased that the Government has taken an important first step to recognising this, by pledging to reward refurbishment of empty homes.”

Under the administration’s proposals councils and communities will work together to decide how to spend the extra funding – whether council tax discounts for local residents, boosting frontline services like rubbish collection or providing local facilities such as swimming pools and leisure centres.

Housing minister Grant Shapps said: “Councillors will now be able to lead a mature debate about the benefits of development. And rather than being punished for not meeting targets, local communities will now have a reason to say yes to new homes, because they will benefit from better local services, or perhaps the redevelopment of their town centre in return for backing new housing.”

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