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Prisk announces £661m New Homes Bonus

Housing Minister Mark Prisk has announced that councils in England will share a pot of £661 million next year through the Government's New Homes Bonus scheme.11 Dec 2012

The money will be paid out among the 353 councils as a reward for delivery of 142,000 new homes, including 58,000 affordable properties, and for bringing 13,000 long-term empty properties back into use, Prisk said in a statement.

The allocation will be paid out in the 2013/2014 financial year.

Prisk said that the New Homes Bonus had "proved critical in ensuring communities see the benefits of housing growth in their area".

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

The Government launched the New Homes Bonus scheme in April 2011. Under the scheme, a bonus is paid to councils each year for six years. The bonus is based on the amount of extra council tax revenue raised by the councils for new build homes, conversions and long-term empty homes being brought back into use. Extra payments are added for providing affordable homes.

Including the allocation announced today, the total payout from the scheme so far is £1.3 billion. This rewards a total of 400,000 new builds and conversions and over 50,000 empty properties being brought back into use, Prisk said.