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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 • one of many wider fiscal changes • the NHB and the planning system Why produce a protocol? • To be consistent and transparent • To allow the ability to direct some of the monies to go to local communities 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! Year 1 monies Will support the following: • Regeneration and Area Partnerships • Grants to the voluntary sector 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 Affordable housing Payment to communities • When? • How? • What for? • Channelled through town and parish councils but will be exceptions • Role of LSPs 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 Any questions? Welcome ideas for spending NHB – event planned www.wychavon.gov.uk (housing) for allocations and protocol