A £2.5 million bonus is to be paid to the Isle of Wight Council thanks to the government’s New Homes Bonus.
The scheme provides an incentive to reward councils and communities for helping to build more homes.
It match funds the additional council tax raised for new homes and empty properties brought back into use for six years — with extra funding for new affordable homes.
In 2014/15, the Isle of Wight Council will receive £2,494,222 through the scheme. Figures show that since it was introduced in 2010, the authority has received £5,849,214, including this year’s bonus.
Housing minister, Kris Hopkins, said the payments gave communities a reason to say yes to new sustainable development with councils free to spend the money as they see fit to benefit the local area.
Under the New Homes Bonus, councils across the South East have been rewarded for delivering 90,000 newly-built homes and conversions and brought 9,000 empty homes back into use.