Friday, 22 October 2010

New Homes Bonus Scheme in Chaos, Housing Market Renewal to continue?

Photo of Graham JonesGraham Jones (Hyndburn, Labour)
Will the Minister not accept that the new homes bonus scheme is in chaos? Can he explain what the incentive will be for local planning authorities, which according to the policy that the Government have set out will receive only 15% of the receipts, with 85% being returned to the shire authorities outside unitary areas, which are not involved in the planning process? Will the incentive be 15%, or will it be greater?
Photo of Grant Shapps
Grant Shapps (Minister of State (Housing and Local Government), Communities and Local Government; Welwyn Hatfield, Conservative)
I am sorry that the hon. Gentleman is so confused about this. It is actually a very simple scheme, unlike ones such as the local housing delivery planning grant, which his Government used. That was so complex that literally nobody understood it or had any idea how much money would come in. Our scheme is simple. For every home built, there will be match funding for six years at the actual band price at which it is built. By the way, if it is affordable housing, 125% of receipts will be provided. We will consult on the split between district and upper-tier authorities, but something like 80% is likely to go to the planning authority. That will be a massive incentive for this country to get out and build the homes that Labour failed to build during its 13 years.
Photo of Gordon Birtwistle
Gordon Birtwistle (Burnley, Liberal Democrat)
Can the Minister confirm that housing market renewal pathfinder funding will continue in the short or medium term, to enable the removal of all unwanted and uninhabited properties in the pathfinder areas? The acquisition and removal of those properties will clear inner areas of our towns and cities to enable the new affordable homes that we desperately need.
Photo of Grant Shapps
Grant Shapps (Minister of State (Housing and Local Government), Communities and Local Government; Welwyn Hatfield, Conservative)
I am very grateful to the hon. Gentleman. I have visited pathfinder schemes on many occasions, and some were very good and some had some problems. We will complete all the committed HMR schemes, and we will then roll the funding up into the regional development fund to continue the good work.