London borough tops New Homes Bonus allocations

The London Borough of Tower Hamlets is set to receive the highest allocation of funding under the government's New Homes Bonus in 2013/14, according to figures released by the Department for Communities and Local Government.

Tower Hamlets: tops allocations list
Tower Hamlets: tops allocations list

Housing minister Mark Prisk yesterday unveiled indicative 2013/14 budgets for the grant scheme, which rewards local authorities for building new homes and bringing empty properties back into use.

Under the New Homes Bonus, the government matches the council tax raised on each new home built in England for six years. The allocations for 2013/14 are based on net additions to the housing stock between October 2011 and October 2012.

According to the Department for Communities and Local Government's figures, the government will pay out £229 million in new funding to councils across England in respect of 142,000 net additional homes added to the housing stock in the 12 months to October this year and 13,000 empty homes brought back into use over the same period.

The funding to councils is more than doubled to £661 million when payments to be made in 2013/14 for more than 200,000 homes built in the preceding two years are factored in.

The figures reveal that six of the 10 councils to receive the highest allocations of funding in respect of homes built in 2011/12 are London boroughs.

The London Borough of Tower Hamlets occupies the top spot, having seen the net addition of 3,372 new homes and a further 133 units brought back into use in the year to October.

This will entitle the council to an additional £5,961,042 in New Homes Bonus cash next year, a figure that rises to £16,070,851 when ongoing payments for the first two years of the scheme are factored in, according to the DCLG figures.

Neighbouring London boroughs Hackney and Islington are second and third respectively for funding allocations based on net additions to their housing stock between October 2011 and October 2012. Barnet, Southwark and Brent are the other top-10 London authorities.

Birmingham City Council and Leeds City Council are the only councils outside of the south of England to feature on the list.

Hyndburn Borough Council in Lancashire received the lowest allocation in respect of homes built since October 2011 – just £5,320.

Prisk said next year’s payments would take the amount given to councils since the scheme began to £1.3 billion.

"For years, developers found themselves at loggerheads with communities unconvinced that their plans for growth would benefit them," he said.

"But the New Homes Bonus is turning this around. The £1.3 billion paid out to councils to date has meant that now local people are able to see the rewards of new developments in their area - paving the way for thousands of much-needed, locally-supported homes to be delivered across the country."

The full list of provisional allocations of New Homes Bonus for the 2013/14 financial year can be found here.

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