- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 08 Dec 2020
New homes bonus
Under the scheme, grant funding is provided annually by central government matching the extra council tax raised by new-build homes, conversions and long-term empty homes brought back into use. Payments are also made for providing affordable homes.
The grant is unringfenced. Councils work with the local community to decide how to spend the funding. This does not have to be on the provision of new homes, and might include council tax discounts for local residents, improving local services or providing local facilities.
By 2016/17 more than £4.8 billion had been allocated.
However, in October 2013 the Public Accounts Committee’s suggested that “The Department (DCLG) has yet to demonstrate that the new homes it is funding through this scheme are in areas of housing need…”
In 2014, the Government conducted an evaluation of the effect of the scheme and in the autumn 2015 spending review confirmed a move to allow the full retention of business rates by 2020 and a preferred option of saving at least £800m from the scheme.
In 2015, the government launched a consultation on options for changes to better reflect local authorities’ provision of new housing, suggesting that it “…is appropriate to consider how the incentive element of the Bonus could be further tightened alongside possible changes to respond to the move towards full retention of business rates and the potential for further devolution of powers and responsibilities to local authorities.”
At the end of 2016, the government confirmed:
- A move to 5-year payments in 2017/18 and then to 4 years from 2018/19.
- The introduction of a national baseline of 0.4% housing growth below which grants will not be made.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
A look at the Government's strategic approach.
Steps to help reduce the spread of infection inside buildings.
This social media-centred hobby can be both dangerous and illegal.
Millwork wall treatment with a long and illustrious history.
HSE introduces cumulative exposure calculator.
The Edwardians and their houses.
Cut off from civilian life for over 900 years.
Gaining green support from the carbon giants.
Medieval passageways with spiritual, transport and economic purposes.
Organisation receives accreditation from Investors in People.
Click the button to subscribe.
Communicating the right information at the right time.
Materials can take on different properties to control heat and glare.
Challenges in the construction sector and beyond.