Department for Communities and Local Government

• Housing
• Housing supply
• New Homes Bonus

Housing

New Homes Bonus

The New Homes Bonus is a powerful, simple and transparent incentive that means that those local authorities which promote and welcome growth can share in the economic benefits, and build the communities in which people want to live and work.

The Government provides additional funding or a 'bonus' for new homes by match funding the additional council tax raised for new homes and empty properties brought back into use, with an additional amount for affordable homes, for the following six years.

The New Homes Bonus is based on past increases in housing supply. It's a powerful incentive for housing growth, because it ensures that growing areas have the resources to meet the needs of their new residents and existing communities.

Allocations for 2012-13

The New Homes Bonus allocations for 2012-13 (totalling £431 million) were announced by the Housing and Local Government Minister, the Rt Hon Grant Shapps MP, on 1 February 2012.

The New Homes Bonus 2012-13 allocations include the second year one instalment of £199 million and the first year two instalment of £233 million. It includes the first affordable homes premium of £21 million.

Allocations for individual authorities can be found in the online calculator, available below under 'Related downloads'.

The New Homes Bonus will remain a flexible, un-ringfenced fund. Local authorities are best placed to understand the barriers to growth in their areas, and the needs of their local communities.

The Department for Communities and Local Government has set aside almost £1 billion over the Comprehensive Spending Review period for the scheme, including nearly £200 million in 2011-12 (in year one) and £250 million for each of the following three years. Funding beyond those levels will come from formula grant. This ensures that the economic benefits of growth are returned to the local level.

The 'New Homes Bonus: unlocking the bonus bulletin', 'The New Homes Bonus Scheme Grant Determination 2011-12', and 'New Homes Bonus: final scheme design' are available to download below under 'Related publications'.

The allocations for 2011-2012 and 2012-13 are available below under 'Related downloads'. The next payments will commence in March 2012.

Further information is available in the frequently asked questions. Enquiries should be sent to:
newhomesbonus@communities.gsi.gov.uk

In this section

• Frequently asked questions about the New Homes Bonus - Updated 1 December 2011

Related downloads

• New Homes Bonus Affordable Enhancement: Description of data sources and methods
  PDF, 53 kb, 5 pages
• New Homes Bonus Calculator
  MS Excel, 989 kb
• New Homes Bonus gross payment calculator instruction guide - updated November 2011
  PDF, 29 kb, 2 pages
• New Homes Bonus Allocations 2012-13
  MS Excel, 78 kb
• New Homes Bonus - Data Representations
  PDF, 106 kb, 8 pages

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Related publications

• The New Homes Bonus Scheme Grant Determination 2012-13: 31/1981

  • Published: 1 February 2012
  • Site: Housing

• New Homes Bonus: Unlocking the Bonus Bulletin

  • Published: 1 December 2011
  • Site: Housing

• The New Homes Bonus Scheme Grant Determination 2011-12 (31/1877)

  • Published: 4 April 2011
  • Site: Housing

• New Homes Bonus: final scheme design

  • Published: 17 February 2011
  • Site: Housing

• New Homes Bonus - Summary of responses to consultation

  • Published: 17 February 2011
  • Site: Housing
  • Status: Response

• New Homes Bonus - Final scheme design and provisional allocations - Letters to all Local Authority Leaders, Local Authority Chief Executives and English MPs

  • Published: 17 February 2011
  • Site: Housing

• New Homes Bonus Consultation - Letter to all LA Leaders and English MPs

  • Published: 12 November 2010
  • Site: Housing