Karl McCartney, Member of Parliament for the City of Lincoln, has welcomed Government funding to build more affordable homes in Lincoln. Through the New Homes Bonus, the City of Lincoln Council has been granted £1,020,885 this year to build much-needed housing in the local area.
The New Homes Bonus is a multi-billion pound programme that rewards communities when they accept more housebuilding in their area. The Bonus includes an extra reward for building new affordable homes, and for getting long-term empty homes back into use.
Building on the flagship Housing Strategy, the Government has today this week unveiled a range of measures to help first time buyers onto the housing ladder, provide support for millions who have been left languishing on social housing waiting lists and get construction on the move.
Mr McCartney said, “Labour led Britain into a housing crisis – the number of affordable homes fell, waiting lists almost doubled and first-time buyer numbers collapsed to their lowest level for a generation.
“Housebuilding is already up a quarter under the Coalition Government, but there is more to do.
“I am delighted to welcome this funding for new homes in our City. The Government’s actions will help local people onto the housing ladder, provide more affordable housing and create local jobs”.
For further information, please contact Karl McCartney MP at karl.mccartney.mp@parliament.uk
-Notes
NEW HOMES BONUS
· The New Homes Bonus is a multi-billion pound programme that rewards communities when they accept more housebuilding in their area. The Bonus includes an extra reward for building new affordable homes, and for getting long-term empty homes back into use (DCLG Press Release, 3 November 2010).
· On 1 February 2012, the Government announced the grant allocation (detail in the attached pdf) for each council around the country (DCLG Press Release, 1 February 2012).
HOUSING MINISTER’S UPDATE FOLLOWING HOUSING STRATEGY LAUNCH
On 1 February 2012, Housing Minister Grant Shapps highlighted how the Government’s action to get Britain building again will play a vital and central role in getting the country’s economy on the road to recovery. Among the range of measures to get the homes the country needs built, the Minister announced:
· That he has already identified enough Government land to build 80,000 homes, and is now working with organisations including the BBC and Royal Mail to find even more unused sites for housebuilding – meaning Ministers are on course to release enough land for 100,000 homes by 2015;
· Details of the NewBuy Guarantee scheme to help those aspiring to buy newly-built properties to do so with just a fraction of the deposit that’s normally required; and
· That he is devolving power from Whitehall to Town Halls, ending a long-standing ‘tax on tenants’ in a £19 billion deal enabling councils to keep the rents they collect and invest the money in their homes (DCLG Press Release, 1 February 2012).
HOUSING STRATEGY LAUNCH
· On 21 November 2011, Housing Minister Grant Shapps published Laying the Foundations: A Housing Strategy for England. This Strategy sets out the Government’s plans to support social mobility and get the housing market – and in particular new housebuilding – moving again (Hansard, 21 November 2011, Col.5WS).
· At the Housing Strategy launch the Prime Minister said: ‘When first-time buyers on a good salary cannot get a reasonable mortgage, the whole market grinds to a halt…affecting builders, retailers, plumbers – all the people that depend on a housing market that is moving. If we don’t do something like this we are not going to get this vital market moving…We will restart the housing market and get Britain building again’ (BBC News, 21 November 2011).
HOUSING STRATEGY – OTHER KEY MEASURES
· Supporting builders with ‘buy now, pay later’ deals. The Build Now, Pay Later deals on the table will help to support builders who are struggling to get finance upfront. We are freeing up formerly used public sector land with capacity to deliver up to 100,000 new homes.
· Boost for larger-scale new development. We will be providing more support for local areas that want to deliver larger-scale new development to meet the needs of their growing communities.
· Incentivising housing growth. We are putting in place strong, new incentives for housing growth through the New Homes Bonus, Community Infrastructure Levy and the proposals for local business rates retention.
· Encouraging a ‘self build revolution’. We are encouraging a self-build revolution which will be facilitated through a Custom Build Homes programme to support and encourage more individuals and communities to build their own homes. This includes making available up to £30 million of new funding to support provision of short-term project finance on a repayable basis.
· Making better use of existing stock, bringing more empty homes and buildings back into use. The Housing Strategy sets out our Strategy for tackling empty homes, including £100 million funding to bring empty homes back into use as affordable housing and changes to council tax to help tackle empty homes and bring them back into productive use, and an additional £50 million of funding to tackle some of the worst concentrations of empty homes (DCLG Press Release, 21 November 2011).
LABOUR’S HOUSING FAILURE
· Lowest number of first-time buyers since 1970s. The number of first-time buyers across the UK fell from 501,500 in 1997 to 185,000 in 2009 (Hansard, 11 November 2009, col. 526WA; Halifax Press Release, 3 January 2010). This was its lowest rate since such records began in 1974 (Council of Mortgage Lenders Press Release, Survey of Mortgage Lenders, March 2003, Table 2).
· Housebuilding plummeted under Labour. Housebuilding in England under Labour fell to its lowest levels since 1946, with just 113,670 completions in 2009-10 (DCLG, House Building: December Quarter 2010, February 2011; DCLG, Live Tables: Table 244, House building, November 2010). This became the lowest peacetime rate of housebuilding across England and Wales since 1923-24 (just 86,000 homes were built in England and Wales, and 137,000 were built in 1924-25) (Cambridge Centre for Housing and Planning Research, Historical Statistics of Housing in Britain, 2005, p.45).
· Waiting lists almost doubled cent under Labour. Local authority housing waiting lists rose from 1.0 million in April 1997 to 1.8 million in April 2010 (DCLG, Live Table 600, November 2010).
· Fewer affordable homes under Labour. There was a net reduction of 200,000 affordable homes under Labour, with the total number of dwellings falling from 1997 to 2010 (Lords Hansard, 10 November 2010, Col. 84WA).
· Labour slashed Right to Buy. Labour made a succession of cuts to Right to Buy, cutting the level of the discounts and eligibility criteria for council housing tenants. Discounts also failed to be increased to reflect rising property prices. The average Right to Buy discount, as a percentage of the market value of the property, fell from 50 per cent in 1998-99 to 24 per cent in 2008-09. In London, the figure fell from 53 per cent to 10 per cent (Hansard, 25 March 2010, Col. 560WA).
· Labour’s broken promises on home ownership. Labour promised in their 2005 manifesto that: ‘By the end of our third term we aim for it [home ownership] to have risen by another million to two million’ (Labour Party, Britain forward not back, 2005, p.78). Yet total home ownership across England fell from 14,791,000 owner occupiers in 2005 to 14,525,000 in 2009-10 (DCLG, English Housing Survey Headline Report 2009-10, February 2010).
