THE Malvern Hills district is set to receive more than £400,000 from the government as a reward for building new homes.

The money will be paid under the New Homes Bonus scheme, which was introduced by the coalition last year to encourage local authorities to support new development.

Councils can receive payments of almost £9,000 on average for each Band D home or almost £11,000 for an equivalent affordable home.

Malvern Hills District Council has received £409,762 and head of housing and planning Gary Williams said news of the payment was very welcome.

“However, we need time to consider properly how and where these payments should be used,” he added. “Any decisions will need to be integrated with our medium term financial plan and take into account ongoing pressures on our finances, long term infrastructure requirements and community needs.”

Malvern’s MP Harriett Baldwin welcomed news of the additional funding, which was announced by Housing Minister Grant Schapps on Monday (April 4).

“The previous policy of imposing top-down housing numbers just didn’t work and I am pleased to see a more sensible solution in place,” she said. “The fund will link district councils' revenues with the number of expected housing completions approved with local support.

“I hope our local councils will welcome the extra ‘unringfenced’ revenues and I look forward to hearing their feedback on these proposals.”