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New Homes Bonus what is it all about?

New Homes Bonus what is it all about?. Wychavon LSP 1 February 2012. Background. Final New homes bonus Scheme published in Feb 2011 Fiscal Incentive to encourage and reward growth Why? lowest level of house building since 1924 house prices doubled in real terms between 1997 and 2007

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New Homes Bonus what is it all about?

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  1. New Homes Bonus what is it all about? Wychavon LSP 1 February 2012

  2. Background • Final New homes bonus Scheme published in Feb 2011 • Fiscal Incentive to encourage and reward growth • Why? • lowest level of house building since 1924 • house prices doubled in real terms between 1997 and 2007 • one of many wider fiscal changes • the NHB and the planning system

  3. Why produce a protocol? • To be consistent and transparent • To allow the ability to direct some of the monies to go to local communities

  4. How it works • New homes (or empty homes coming back into use) will attract a payment for 6 years • Only eligible when built and occupied • Sum is ‘equal to the national average for the Council tax band on each additional property’ • Unringfenced grant • Two tier areas • Caution – may replace other funding!

  5. Year 1 monies Will support the following: • Regeneration and Area Partnerships • Grants to the voluntary sector

  6. Future years’ allocations 4 main areas: • Planned growth around the city of Worcester • Development in towns and villages (within a parish or town and adjacent to towns) • Supporting affordable housing • Supporting the council tax and frontline services

  7. Affordable housing

  8. Payment to communities • When? • How? • What for? • Channelled through town and parish councils but will be exceptions • Role of LSPs

  9. Worked example • Village A has had a permission for 10 new houses granted • Development constructed and units occupied • Following year the NHB kicks in • We get 80% and County get 20% • So say Band D is £1,400 – 80% is £1,120 (County gets £280) • We get £1,120 x 10 houses = £11,200 for 6 years • We agree to return up to 40% of that to the local community subject to an agreed process • This would mean that the community (via the parish council?) would be eligible to get £4,480 for 6 years or £27k over the 6 years

  10. Any questions? Welcome ideas for spending NHB – event planned www.wychavon.gov.uk (housing) for allocations and protocol

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