£11.9 million payday to Greenwich Council from New Homes Bonus scheme
Greenwich Council look to receive £11.9 million from central Government next year owing to the number of homes built this year across the borough.
The money is from the New Homes Bonus fund which sees money for each local authority based upon net additions to housing stock over the previous year, with a premium for each unit that is “affordable”.
This fund is separate to Section 106 and Community Infrastructure Levy income. I looked at income from those sources recently – with £4,767,723 from S106 and £3,143,365 from CIL in 2018/19.
Unlike those funds, New Homes Bonus income which totals £11,927,624 in 2020/21, enters general funds without ringfencing.
I first looked at the NHB fund in 2017 when £13.7 million income was allocated to Greenwich Council taking the total to £54 million since the scheme commenced in 2011/12. Since then the authority saw £12.2 million in 2018 and £11.1 million in 2019.
The reduction from a peak in 2017 is mainly due to falling numbers of new homes built. Greenwich borough saw less than two-thirds of its annual housing target met in recent figures.
The scheme took some time to get going. Here’s the past decades income:
- 2011/12 – £924,000
- 2012/13 – £3.15 million
- 2013/14 – £5.8 million
- 2014/15 – £7.6 million
- 2015/16 – £10.8 million
- 2016/17 – £13.5 million
- 2017/18 – £13.7 million
- 2018/19 – £12.2 million
- 2019/20 – £11.1 million
- 2020/21 – £11.9 million
It should be noted there is some lag with payments from previous years.
When looking at rolling three year averages, Greenwich met 77 per cent if its target – which is at the bottom end across London. Lewisham was at 98% and Bexley 97%.
As for “affordable” homes, last year’s was 28 per cent of the total though the previous year actually saw a figure of -1%, which was one reason for the drop in income seen from 2017 peaks.
Follow up posts will look at other boroughs.