- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 02 Jul 2018
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
RSHP's Merano wins RIBA accolade.
How to differentiate between partial possession and early use.
Ofwat proposes £12 billion additional investment and £50 bill reductions.
Avoiding 'winner's curse' and other useful info.
Developing test methods for video flame/smoke detectors
Waiting for a new deal ...but will funding materialise?
Our servers have reached another milestone. Why not write an article and be seen by our 6.5 million users.
RSHP celebrates competition win in Paris.
All about approved inspectors.
Whilst apparently confusing, German conservation is actually not that different.
The rise and fall of council housing. Book review.
Drivers of change in global heating markets.