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Councils share £431m from new homes bonus

Thursday, 1 December 2011 3:09 PM

Local councils will share £431m in payments under the second year of the New Homes Bonus.

Housing minister Grant Shapps said the payments were due after the councils helped to deliver 159,000 homes in the last year.

The total was made up of 137,000 new homes and 22,000 empty properties brought back into use between October 2010 and October 2011. It included 61,000 affordable homes, which attract bonus at an enhanced rate.

The second year’s bonus is more than double the first year's payments because it includes £232m for the 159,000 homes plus a second tranche of £199m for homes delivered last year.

Under the scheme, the government matches the council tax raised on the new homes for the first six years.

Shapps claimed the bonus was triggering a change in attitudes to development within local councils and communities.

He said: "For years communities fought against development because they saw no evidence of how it improved their lives.

"But there is a culture shift taking place across the country - communities that are going for growth are reaping rewards for their local area, and councillors can now lead a mature debate about the benefits of development."

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