The New Homes bonus programme aims to deliver 140,000 new homes over the next 10 years by offering cash incentives to local authorities. But the NAO said in a report that these estimates are based on “very limited evidence”.
NAO chief Amyas Morse said: “While it is too early for the scheme to have had a discernible impact on the number of new homes, the signs are not encouraging.
“The department must now urgently carry out its proposed review of the scheme.”
Meanwhile, the Budget has set out two new homebuilding schemes.