propertytalk Live! - Local Authorities losing millions by scrapping plans for new homes

propertytalk Live! - Local Authorities losing millions by scrapping plans for new homes

New research reveals that Local Authorities across the country are losing out on millions of pounds in central Government funding for failing to build the homes their areas need.

At a time when all Local Authorities have seen their funding cut and are making difficult budgetary decisions, the new figures show that Local Authorities will in future be missing out on up to £27M a year by scrapping previous plans for homes or not building enough to meet the needs of their communities

The New Homes Bonus is a cornerstone of the new 'localism' based planning system. The Government hopes it will incentivise Local Authorities - who have already seen their general funding cut - to facilitate housing construction, enabling the Coalition to meet its objective of building more homes and alleviating the country's growing housing crisis.

Last week Local Authorities across the country learnt for the first time how much they will receive from central Government this year for building homes. Some will gain over £4M in New Homes Bonus whilst others will receive nothing.

The Government's own household formation projections show we should be building 232,000 homes a year to meet the country's need. Yet figures released last week show only just over 100,000 were built in 2010 - the lowest in any peacetime year since 1923. HBF's latest Housing Pipeline report also showed Local Authorities are granting planning approvals for fewer and fewer new homes. Yet millions of families languish on Local Authority waiting lists and first time buyer numbers have collapsed.