Shropshire could receive more than £13 million over the next six years under a housing revolution scheme announced by the Government to reward communities where more homes are built.

Housing Minister Grant Shapps announced the first cash bonuses totalling almost £200 million and said that communities which go for growth will reap the benefits while delivering a much-needed economic boost to their area.

He also confirmed details of how housebuilding will be transformed through incentives that will encourage communities to back rather than oppose development as they will get to choose how the money is spent.

Under the scheme Shropshire Council would receive £1.7m, excluding extra payment for affordable housing, while Telford & Wrekin Council would get £492,000.

Payment over six years, based on the expected delivery of homes in year one would result in £10.7m for Shropshire and £2.9m for Telford & Wrekin.

Through the New Homes Bonus the Government will match the council tax raised from new homes for the first six years.

The bonus available for an affordable home will be up to 36 per cent more than for a similar market home, equivalent to an extra £350 per house premium every year. Empty properties brought back into use would also generate a bonus for six years.

This would equate to payments of more than £9,000 paid on average for each band D home or almost £11,000 for an equivalent affordable home.

If an area increased the number of homes by 1,000 units this could earn a community £10 million to spend as they saw fit.

Mr Shapps said: “Telling communities what homes they need and where they should be built has had catastrophic consequences.

“House building levels have nosedived, hitting the construction industry hard, and in many areas caused local tension by dividing communities.

“We need to get the country building again, but not through a Whitehall knows best arrogance.

“To kick-start a housebuilding revolution development needs to be backed by local communities rather than opposed by them,” he added.