Government's New Homes Bonus could be unlawful

17 February 2011

Final details of the Government's flagship housing scheme, the 'New Homes Bonus' (NHB), are anticipated later this week (most likely Thursday). But a legal opinion obtained by the Campaign to Protect Rural England (CPRE) on the proposed scheme concluded that it would be unlawful.

The legal opinion suggests that by linking the outcome of planning decisions to financial rewards, any decision taken would be tainted and open to question. This means that, unless there are significant changes to the proposed scheme, any planning permission for new housing linked to the NHB would stand a good chance of being overturned in a judicial review. [1]

Neil Sinden, Director of Policy for CPRE, says: “We informed the Housing Minister of our legal opinion back in December. When the Government launches the final scheme we will examine it closely to ensure that our concerns have been fully addressed.

“Many councils are currently facing hard financial choices. In these circumstances it will be very tempting to seek to fill shrinking coffers by permitting any development, regardless of its environmental impact. But decisions based solely on money, rather than on whether proposed development is appropriate and sustainable, could be hugely damaging. It could also undermine the fundamental principle that planning decisions should be taken in the public interest, taking account of land use consequences.”

CPRE shares the Government's view that there is a need for new affordable housing. However, with a third of new housing built in the last 5 years having been rated as 'poor', and around half as 'average', there is a big question over the commitment to quality in the house building industry [2]. Rather than focusing on delivering housing numbers alone, the Government should also be emphasising the need for well designed and appropriately located new homes in high quality, thriving neighbourhoods.

Notes:

1.Consultation Paper on the New Homes Bonus Scheme, Joint Opinion, John Hobson Q.C. and Stephen Whale, 4-5 Gray's Inn Square, 13 December 2010

2.CABE, Improving the design of new housing: What role for standards?, 15 June 2010, http://www.cabe.org.uk/publications/improving-the-design-of-new-housing

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