New Homes Bonus: Greenwich to see £7.3 million next year. Bexley just £311k
Preliminary figures released last week reveal how much local authorities are likely to see next year as a result of home building in their boroughs.
In keeping with prior years there is a vast difference between boroughs. For those unaware, the New Homes Bonus is an incentive from central Government given to local authorities to encourage housebuilding. There is a set payment per new home, with an additional payment if they are “affordable”.
Greenwich is in line for £7,279,975 from 1594 homes between October 2019 and October 2020. That’s a reduction from £11.9 million the previous year.
Payments to Greenwich Council over the past decade include:
- 2011/12 – £924,000
- 2012/13 – £3.15 million
- 2013/14 – £5.8 million
- 2014/15 – £7.6 million
- 2015/16 – £10.8 million
- 2016/17 – £13.5 million
- 2017/18 – £13.7 million
- 2018/19 – £12.2 million
- 2019/20 – £11.1 million
- 2020/21 – £11.9 million
Bexley on the other hand will see just £310,989 from 240 new units. A lack of building is a key issue in Bexley Council’s current financial problems and discussions for emergency government help. The slow build rate at Peabody’s sites in Thamesmead has hit income, and failing to encourage mixed-use developments in town centres has compounded problems.
Lewisham will see £2.7 million as 514 residential units were added to existing stock.
While the pandemic has hit building levels, no borough has hit building targets in recent years. Bexley has been particularly bad, with barely any homes built for a number of years.
New housing generally brings in three sources of income directly for local authorities; Section 106, the Community Infrastructure Levy and New Homes Bonus. And additional council tax income of course from residents. NHB is not ringfenced.
Click here to view information on New Homes Bonus.
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