Monday, 8 April 2013

Why New Homes Bonus is unfair

I have spoken and written endlessly about this. Councils have their budgets slashed and get a payment back dependent on how many houses they build.

My concerns summarised are;
- builders build houses based on market condition, not Councils making the link to Council funding unfair
- wealthy southern councils have a housing shortage, northern mill towns a depopulation issue (net 800 people left Hyndburn latest census)
- no one wants to build houses in Hyndburn
- social housing was stock transferred undermining Hyndburn Council's ability to rebuild
- evidence shows the more new build houses = more empties somewhere else in Hyndburn
- demolishing actually counts as minus 1 for the New Homes Bonus (it's net new additions)
- two-into-ones also count as minus one
- councils have little powers to take over land banked land and have no money to build.
- the new homes bonus payment per net addition paid to Councils can be spent by the council on anything. 
You can see from the table that no new homes were built which means once again Hyndburn residents are paying a higher council tax receiving poorer services to subsidise executive homes being built in the south and elsewhere.

No wonder the north doesn't like the the Tories.