Elmbridge has received a £1.2m cash incentive to build new homes.

The New Homes Bonus, allocated by the Department for Communities and Local Government, serves as a powerful incentive for councils to drive development.

It will reward Elmbridge for building new homes and bringing empty homes back into use.

Council tax will be matched by the Government for six years, with extra money for every affordable home.

Dominic Raab, MP for Esher and Walton, said: “Given the pressures on the public finances, the additional money that will come back to Elmbridge is welcome.

“It is right that local communities see more of the tax revenue raised locally and, given the influx into the borough, it is important we have the funds to pay for vital infrastructure and services.”

Housing Minister Grant Shapps MP announced the grant allocations for 2012-13, which included £1,247,137 for Elmbridge.

He said: “For years communities fought against development because they saw no evidence of how it improved their lives.

“Their experience of housebuilding under the old system top-down targets amounted to the wrong homes being built where they weren’t wanted, and their concerns about extra pressure on local services ignored.

“So I’m delighted that after just one year of the New Homes Bonus this is now changing.

“There is a culture shift taking place across the country - communities going for growth are reaping rewards for their local area, and councillors are reporting that it is now much easier to lead a mature debate about the benefits of development.”