£1bn of government funding has been set aside for councils that welcome new housing developments in their areas.
Councils will benefit from a higher level of funding for encouraging new affordable homes to be built in the local area, with council tax matched and then supplemented by £350 per home each year for six years.
Councils and communities will decide together how to spend the extra funding, whether on council tax discounts for local residents, boosting frontline services like rubbish collection or providing local facilities like swimming pools.
Councils will also receive a higher level of funding for building new affordable homes.
Shapps said: "For too long communities have fought against development because they can't see how it does anything to improve their lives. The New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs."
"And rather than being punished for not meeting targets, local communities will now have a reason to say yes to new homes, because they will benefit from better local services, or perhaps the redevelopment of their town centre in return for backing new housing."
Further information:
Communities and Local Government
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