The government is to consult over the future for the New Homes Bonus as soon as the spring – pitching the continued prospect of rewards for councils “ambitious” over housing delivery.
In a written statement to the Commons, Housing Secretary Robert Jenrick said the consultation would include moving to a new, more targeted approach incentivising homes where they are needed most.
And where councils were ambitious over delivery there will continue to be rewards, he said.
A new round of allocations of the new homes bonus for 2020-21 amounts to £907m.
As part of this, Jenrick confirmed the commitment of an additional £7m to maintain the growth baseline for payments at 0.4%.
“We will make no legacy payments on these new allocations, but the government will make legacy payments on allocations made in earlier years which are due to be paid in 2020-21,” said Jenrick.
“In order to ensure that the new homes bonus is focused on incentivising homes where they are needed most, government will consult on the future of the housing incentive in the spring.
“This will include moving to a new, more targeted approach that rewards local authorities where they are ambitious in delivering the homes we need,” he said.