31 Oct

Govt’s new build scheme slammed by MPs

Govt’s new build scheme slammed by MPs

A government scheme to encourage the building of new homes has been slammed by MPs, who have said an urgent review should be carried out.

Eric Pickles, communities and local government secretary, has allocated an initial £1.3 billion to fund the New Homes Bonus - a payment by results incentive, which is paid to local councils by central government for increasing the number of homes. 

This bonus, which is to be paid each year for six years, depends on how much extra council tax is raised for new build homes, conversions and properties being brought back into use. The idea behind this scheme is to boost the number of houses for sale and buy to let properties in the UK.

However, the Public Accounts Committee has said that there is no credible data to work out whether the scheme is working, even after it has run for two years. 

It also commented that the data that had been released indicated that the scheme was in fact exacerbating the UK’s housing shortage by benefiting areas in which the need for new homes was not that high, instead of those that need it most. ADNFCR-1222-ID-801655923-ADNFCR

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