THE comparison could hardly be starker. For every pound England spends on rural housing, Scotland spends ten. The National Housing Federation rightly calls the spending gap 'startling' in the evidence it presented this week to the Taylor inquiry into affordable housing and the rural economy.

The inquiry chaired by Matthew Taylor, Liberal Democrat MP for Truro and St Austell, has raised hopes in rural communities to the affordability crisis caused by rising house prices and second home ownership. However, they would be wise not to set their hopes too high. Only two years ago another independent inquiry chaired by journalist and broadcaster Elinor Goodman recommended more than 7,266 new affordable homes in rural areas per year. As the NHF points out, the current programme will only deliver 3,233 homes and last year's spending review only increased funding by 10% at a time when the overall housing budget increased by 30%.

The Scots spend £134 per head on rural social housing compared to just £13 in England. Part of the reason for the difference, says the NHF, is that rural housing in Scotland is spread over more remote areas. Another may be that public spending in Scotland in general is higher than in England.

But that cannot explain all of the difference. The inquiry is focussing on the planning system and the NHF suggests that one problem may be patchy implementation of planning guidance, local development plans and section 106 policies by rural local authorities. The best authorities are doing innovative work on maximising output from exceptions sites and community land trusts but the worst ones are not doing much to address the problem.

Perhaps another reason is that many rural authorities in England are so small and therefore lacking in resources and expertise. One of the earliest tests of that proposition will come in Taylor's home county of Cornwall, where the existing county council and six districts will be replaced by one unitary authority in 2009.

As the last spending review demonstrated, rural housing and rural issues in general also seem to be lower down the political agenda in London-centric England. Part of the reason for that may be an electoral system that turns most rural elections into Conservative/Lib Dem contests with Labour nowhere and reliant on urban areas for its hold on power.

But, whatever the reasons for it, the crisis in rural housing needs to be addressed urgently. Otherwise families like the 201 who applied to a housing association in Wiltshire for just two houses will continue to be left out in the cold.

Posted by Jules Birch, March 20

Posted in Rural housing

WHAT'S the opposite of joined-up government? Whatever term you care to come up with, the decision to cut capital gains tax on second homes is surely a prime example of it.

In a report published today, the government's own rural advocate says he is 'disappointed' by the cut. Many people would put it more strongly than that but the criticism from Dr Stuart Burgess of the Commission for Rural Communities is somehow all the more powerful for being understated. 'I would urge government to consider removing this tax reduction from the sale of second homes,' he says.

Describing lack of affordable housing as 'the single biggest issue' facing rural communities, he also calls on the government to give rural housing more priority in regional spatial strategies and regional housing board allocations and to encourage local authorities to ensure that extra money from second homes council tax is spent on housing.

The tax cut is part of a wider reform of capital gains tax that was intended to tax super-rich private equity bosses more heavily by introducing a flat rate 18% tax rather than 40% tapering down to 10%. However, for anyone who has bought a second home - or a buy to let investment - in the last ten years it means a substantial tax cut from April. And it makes second home ownership a far more tax-friendly proposition in future.

If that wasn't unjoined-up enough, the proposed cut comes at a time when an independent review for the government by Lib Dem MP Matthew Taylor is set to recommend new curbs on second home ownership. According to the weekend papers, the government is prepared to back new powers for local authorities in the most sought-after rural areas to stop outsiders buying property unless it will be their main residence.

With only a month to go before the tax cut is due to be introduced, campaigners might be forgiven for thinking it is too late. However, just over two years ago the government had a last-minute change of heart after it realised the implictions of an equally ludicrous proposal to offer tax subsidies to higher-rate tax payers to buy property through their pensions. It's never too late to admit you've got it wrong.

Posted by Jules Birch, Mar 3 

Posted in Rural housing , Second homes