New homes bonus for councils will 'worsen England's north-south divide' | Society | The Observer
A new government scheme to tackle the homes crisis will perversely favour the construction of executive housing and exacerbate the north-south divide, according to housing experts.
The National Housing Federation, which represents England's housing associations, warns that the new homes bonus, introduced this month, will result in a significant expansion in executive homes in southern England while hampering the construction of social housing in the north.
Under the government's new localism agenda, councils will be rewarded each time a new home is built. The rewards are based on which council tax band the house sits in, with bonuses paid for each of the first six years the property is occupied. It means homes in higher council tax bands will attract greater rewards.
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