Murky Depths

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Greenwich borough

£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”.

2010s development seen from Greenwich High Road

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.

330 homes at Victoria Way in Charlton bring millions in S106, CIL and NHB income

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.

In November I covered housing completions across the borough. Greenwich saw 1,900 net completions of homes last year which is 63 per cent of the London Plan target of 2,685.

New homes in Woolwich

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.

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4 Comments

  1. Ashley

    We shall see where these funds go! Just hope it’s not the wasteful GLLAB.

    More investment is required for the public Realm, estates and public spaces.

  2. Again I must ask what is Greenwich council doing with all that income? It’s housing stock and the public realm continues to suffer from lack of investment, not to mention the ever lengthening housing list.

  3. CDT

    I hope some of the money will spent on the existing housing stock and some of the older housing built previously to the war in the 1920’s and 1930’s or older and the post war period 1940’s and 1950’s. .

    Many of these homes are cold and draughty and need improvements to double glazing,and Central heating etc to make them more energy efficient and up to the latest standards.

    It is great seeing large housing estates refurbished and re-developed around the borough including Morris Walk Estate which is soon to be redeveloped. But there are many other older councils homes across the borough that need improving too.

    I also hope some of the money will go towards building new social housing around the borough to help reduce the ever growing housing list.

  4. CDT

    As part of the £11.9 million new homes fund. I would also like to see some sheltered accommodation blocks built to house elderly residents and residents with disabilities who need to be in purpose built flats connected to an emergency call system or on site warden.

    I feel housing for older and disabled residents are sometimes forgotten when planning new housing developments.

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