New Homes Bonus not enough

10 August 2010

A new house

The Government’s New Homes Bonus for councils is welcome, but it won’t be enough to solve the housing crisis, Shelter has warned.

Under the new plans announced by Housing Minister Grant Shapps, the government will match the council tax raised on each new house for six years. Local councils may choose how to spend this extra funding.

Shelter’s deputy director of policy and campaigns, Caroline Davey, said:

‘This is welcome recognition of the urgent need to increase the supply of new affordable homes.

Shelter’s Local Housing Watch shows that 98% of local authorities in England are failing to deliver enough affordable housing to meet local need, so any proposals that incentivise councils to build are an important step forward.

‘But with 1.8 million households on housing waiting lists and millions more struggling to access an affordable place to live, a New Homes Bonus will not be enough to solve our escalating housing crisis.

‘That’s why it’s vital that the government prioritises continued investment in new homes in the upcoming Comprehensive Spending Review.’

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