Councils to share £146 million for new homes

£146 million additional funding will be distributed to councils across the country to plan and deliver new homes, for councils to choose how to spend locally.

The Housing and Planning Delivery Grant provides a direct incentive for councils to work with partners in the public and private sector to ensure that new homes are built where they are needed.

In order to be eligible for the planning element of the grant, local authorities must show progress on continuing to provide suitable land for development over future years, providing the local plans necessary to deliver the needed homes and carrying out a strategic assessment of their housing market.

Last year councils received £135 million to help them build new homes where families need them. The average grant councils receive is approximately £390,000, paid to 375 authorities.

Housing Minister John Healey said: "The need for more homes remains despite the recession, and we are determined to see more homes built to help improve affordability - particularly for first-time buyers, reduce pressure on waiting lists and address over-crowding."

"A shortage of new houses pushes up house prices, council waiting lists and private sector. This incentive will also ensure that all councils are taking action now and will give the housebuilding industry greater certainty and confidence in the economic recovery."

Further information:
Communities and Local Government