Council homes scheme reaps reward

ALMOST £300,000 is set to be handed to Oldham as part of a Government scheme to reward councils for building new homes and bringing existing properties back into use.

The New Homes Bonus awards cash to areas that have built more homes and brought empty homes back into use. Council tax raised from new homes is matched by the Government for the first six years, and affordable homes attract a higher payment.

Oldham’s allocation is £294,180, of which £36,400 is for the 19 empty homes it brought back into use and the affordable units which include caravan sites it created between October, 2010 and this year, and £257,180 for another year of match funding for homes provided the year before.

As the total is accumulative for six years, next year Oldham will be given the £294,180 plus extra cash for whatever homes it creates or brings back into use in the year from October 2011.

The cash is not ring-fenced and therefore councils and communities can spend it however they want.

Government hopes the local communities can share the benefits through facilities such as a new playground, improving local services or even reducing council tax.