New homes bonus scheme 'will not lead to building bonanza' in Watford (From Watford Observer)

New homes bonus scheme 'will not lead to building bonanza' in Watford

4:40pm Monday 9th August 2010 in

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A scheme that will see local authorities receive extra government cash for each new home they allow “will not lead to a building bonanza,” Watford’s mayor has said.

The coalition government, which earlier in the year scrapped centralised housing plans, hopes its New Homes Bonus scheme will help plug any resulting shortages.

Under the scheme, announced today by housing minister Grant Shapps, planning authorities like Watford Borough Council will have council tax payments for each new home matched for a period of six years – worth nearly £8,500 for an average family home.

This money could then be spent directly in the community.

Mayor Dorothy Thornhill welcomed the idea but said it would have very little impact on Watford. She said: “I welcome anything that adds money to our coffers but it won’t change the way we judge developments in Watford.

“For us it will continue to be about finding the right development for the right location. We were already meeting all our targets so this won’t lead to any kind of building bonanza.”