Bonus plan for home building
Reporter: Lewis Jones
Date published: 24 February 2011
COMMUNITIES in Oldham are being urged to pledge their support to new housing developments, with the Government offering cash incentives in return.
Over £900,000 has already been secured for the borough’s neighbourhoods as part of the New Homes Bonus scheme.
The idea, devised by the coalition, will see the Government match the council tax raised by affordable new-build homes for the first six years. Empty properties brought back into use will also be eligible.
This could see up to £350 extra per home in funding paid to the council each year, but nearby residents will have the say on how this would be spent.
Communities themselves can decide whether this is used for council tax discounts for local residents, boosting services such as rubbish collection or to provide local facilities such as leisure centres, swimming pools or skate parks.
Housing Minister Grant Shapps said: “Housebuilding levels have nose-dived, hitting the construction industry hard and, in many areas, causing local tension by dividing communities.
“To kick-start a housebuilding revolution development needs to be backed by local communities rather than opposed by them. That’s why we are introducing powerful new incentives giving communities a reason to say yes to new homes.”
In Oldham, 117 extra homes were identified between October 2009 and 2010, amounting to over £900,000 in extra cash over the six years.
In theory, if over 1,000 houses are built then over £10 million would be invested locally.
Nationally, almost £1 billion has been put aside to fund the scheme, with the Government estimating 140,000 to be created over the next decade.
Mr Shapps claimed this is an opportunity ripe for the taking for young campaigners to see investment in a tough climate.
He said: “Up and down the country teenagers are calling out for more fun things to do and places to go to meet their friends, but with public finances so tight many communities have given up hope on the prospect of new facilities.
“Thanks to the New Homes Bonus a new five-a-side pitch doesn’t need to be a football fantasy if it’s what the community needs and wants.”
He urged campaigners to contact the council to have their say on how the money is spent.