Response: CLG - New Homes Bonus

By: Deborah Garvie  Published: December 2010


With an escalating housing crisis and the building of new homes at the lowest rate for nearly a century, Shelter welcomes any proposal that incentivises local residents to favour, and councils to encourage, the building of new homes. If our housing crisis is to be resolved, new homes must be affordable to people on average and below average local incomes.

Summary

We strongly support the principle of an enhanced payment to incentivise affordable housing. However, we would like to see the affordable housing enhancement distinguish between different types of affordable housing.

We are also concerned about the impact on affordable house building of the general unit of reward being based on the national average band of each dwelling built. 

The incentive should also be viewed in the context of a 60 per cent cut to housing capital funding.

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