A flagship government scheme to incentivise councils to build new homes could leave town halls facing costly legal challenges over ‘gifted’ land. The new homes bonus, which rewards councils that build housing by matching the council tax for the first six years, is subject to state aid rules. This means councils that provide land for developments without putting it out to tender will be vulnerable to litigation. However, lawyers this week warned that few councils are aware of the threat and are reluctant to spend time and money procuring land they would have previously given to developers for free. Prior to the introduction of the new homes bonus in April, councils commonly gifted land to developers, including housing associations. The gift would be recorded as land disposal and would not therefore be subject to EU procurement rules. Read more on Inside Housing.
No comments:
Post a Comment