Garden cities: Homeowners could get payout if house values fall says Nick Clegg

Deputy Prime Minister said he did not want people to ‘lose out’ due to the creation of garden cities

Deputy Prime Minister Nick Clegg said the Government is "actively looking" at forms of compensation to homeowners who live close to the new garden cities being built, if the developments affect the price of existing houses.

Mr Clegg said he did not want homeowners to "lose out" and claimed the Government could guarantee the price of people’s homes either by offering to buy their properties "up front" or offering compensation through reduced council tax.

Plans for the garden cities were announced in April by the Deputy Prime Minister as a bid to tackle the UK’s "chronic" housing crisis.

The development of three new cities has now been confirmed, each containing more than 15,000 homes, two of which are expected to be built in the south east of England.  

Speaking to the BBC’s Countryfile programme, Mr Clegg said: "We could maybe give deductions on [homeowners’] council tax over a period of time during which the garden city is being built, we could possibly also say to those homeowners where they think the price of their homes will be effected, we will guarantee the price of their home, by buying it, if you like, up front."

Major construction projects are known to carry the risk of knocking the value off of nearby properties while the work is carried out, and Mr Clegg said the Government is "actively looking" at plans that could see the houses of those affected bought at full market price during the period of work.

"We’re actively looking at things like that to show that we will go the extra mile to allay those concerns of people who feel tha their property, or the price of their home, might be affected. We don’t want to lose out.

"This is something that we do anyway, don’t we, as a country, where you can have big infrastructure projects – I think the same principles can and should be applied to garden cities," he told the programme.

Mr Clegg said he wants a shortlist drawn up of potential locations for new garden cities to be published by December this year.

It follows the worst period of construction of new homes in four years, with only 109,370 home built in 2013, despite the number of households in the UK expected to grow by 221,000 each year over the next 10 years.

The garden cities are reminiscent of those build after the Second World War, when families were displaced following the Blitz, there was a baby boom, and the UK was suffering from a weak construction industry. At the time, 27 new towns were built across the UK, including the now well-established Milton Keynes, Stevenage and Corby.

Mr Clegg told the Telegraph: "Many people will want to live in world-beating garden cities.

"The whole point of them is that they must be well designed, support jobs, contain top-quality green space and services – the best of town and country in one place. But we also need to make sure that no individuals lose out during the development."

The paper reported the compensation scheme could mirror plans drawn up by ministers to help out homeowners living along the route of the London to Birmingham HS2 line, which would see the Government but properties within 60 meters of the line at full market value plus an extra 10 per cent.

Start your day with The Independent, sign up for daily news emails
News
FIFA President Sepp Blatter reacts during a news conference in Zurich June 1, 2011
news
News
people
Life and Style
food + drink
News
peopleKatie Hopkins criticises River Island's 'seize the day' bags for trying to normalise epilepsy
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
Nicole Kidman plays Grace Kelly in the film, which was criticised by Monaco’s royal family
film'I survived it, but I’ll never be the same,' says Arash Amel
Life and Style
Retailers should make good any consumer goods problems that occur within two years
tech(and what to do if you receive it)
Life and Style
healthIf one was missed, vomiting blood was seen as a viable alternative
Life and Style
tech
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

Guru Careers: Software Developer / Web Developer

£30 - 40k + Benefits: Guru Careers: A Software / Web Developer (PHP / MYSQL) i...

Guru Careers: Account Executive

£18 - 20k + Benefits: Guru Careers: An Account Executive is needed to join one...

Guru Careers: Software Developer / Software Engineer

£35 - 40k + Benefits: Guru Careers: A Software Developer / Software Engineer i...

Day In a Page

Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor
The ZX Spectrum has been crowd-funded back into play - with some 21st-century tweaks

The ZX Spectrum is back

The ZX Spectrum was the original - and for some players, still the best. David Crookes meets the fans who've kept the games' flames lit
Grace of Monaco film panned: even the screenwriter pours scorn on biopic starring Nicole Kidman

Even the screenwriter pours scorn on Grace of Monaco biopic

The critics had a field day after last year's premiere, but the savaging goes on
Menstrual Hygiene Day: The strange ideas people used to believe about periods

Menstrual Hygiene Day: The strange ideas people once had about periods

If one was missed, vomiting blood was seen as a viable alternative
The best work perks: From free travel cards to making dreams come true (really)

The quirks of work perks

From free travel cards to making dreams come true (really)
Is bridge the latest twee pastime to get hip?

Is bridge becoming hip?

The number of young players has trebled in the past year. Gillian Orr discovers if this old game has new tricks
Long author-lists on research papers are threatening the academic work system

The rise of 'hyperauthorship'

Now that academic papers are written by thousands (yes, thousands) of contributors, it's getting hard to tell workers from shirkers
The rise of Lego Clubs: How toys are helping children struggling with social interaction to build better relationships

The rise of Lego Clubs

How toys are helping children struggling with social interaction to build better relationships
5 best running glasses

On your marks: 5 best running glasses

Whether you’re pounding pavements, parks or hill passes, keep your eyes protected in all weathers
Joe Root: 'Ben Stokes gives everything – he’s rubbing off on us all'

'Ben Stokes gives everything – he’s rubbing off on us all'

Joe Root says the England dressing room is a happy place again – and Stokes is the catalyst
Raif Badawi: Wife pleads for fresh EU help as Saudi blogger's health worsens

Please save my husband

As the health of blogger Raif Badawi worsens in prison, his wife urges EU governments to put pressure on the Saudi Arabian royal family to allow her husband to join his family in Canada