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Darren works on housing policy at the Joseph Rowntree Foundation. Before this, Darren worked on housing, UK poverty and environmental ...more
Neither the government nor Labour appear to be focusing on the rural housing crisis
Thinktank the Institute for Public Policy Research (IPPR) has issued a call for evidence on how best to tackle the shortage of affordable housing in rural areas. Darren Baxter explains more
Coverage of the housing crisis all too often focuses on our towns and cities, principally those in London and the South East.
But unaffordability, and the problems it causes, are not isolated to urban areas. Those in rural areas also face challenges in accessing decent, secure and affordable homes.
Research by the IPPR has found that in general it costs more to buy or rent in rural areas – up to 50% more expensive than all but the most densely populated urban areas.
What is more, these prices are out of sync with local earnings, creating profound issues for affordability.
“Many of those delivering rural housing feel that the government has failed in its attempts to rural-proof policy, and the Labour Party’s recent housing green paper makes scant reference to the issues.”
The high cost of housing in these areas stems from a set of unique characteristics that shape rural housing markets.
What is more, government policy has often failed to pick up on these factors, creating unintended consequences for rural communities.
Many of those delivering rural housing have reported to us that they feel the current government has failed in its attempts to rural-proof policy, and the Labour Party’s recent housing green paper makes scant reference to the issues which affect rural areas most.
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For example, most sites in rural areas are small and the recent weakening of Section 106 requirements for affordable housing on sites of less than 10 homes have undermined a key flow of affordable housing into rural areas.
This policy can also drive up the cost of land by increasing the return a landowner would expect to make.
Again, this is particularly important in rural areas where there is some evidence that rural landowners are willing to release land at existing use value if it is to benefit rural communities and their ongoing viability.
Moreover, specific support which once existed for rural areas has been removed. The rural target for government grant funding for new affordable homes in villages of less than 3,000 people has been repealed, contributing to a lack of building by some housing associations.
Moreover, the small and medium-size builders that provide most rural housing have lacked support and have been excluded from bidding for other capital grants and loan funding.
“Specific support which once existed for rural areas has been removed.”
A failure to address these unique challenges creates significant problems for rural communities and those who live within them.
A lack of affordable housing contributes to inequality, deprivation and homelessness. IPPR research on rural homelessness found that between 2010 and 2016, mainly rural local authorities recorded a rise from 191 to 252 rough sleepers – an increase of 32%. In largely rural areas there has been a leap of 52%.
Moreover, a lack of affordable housing leads to ‘rural flight’, whereby young people and families leave villages as they cannot find or afford a home.
Ultimately this undermines the viability of rural communities and rural services, and can lead to the closure of the shops, schools, pubs and other services that are required to keep villages viable.
At IPPR we are working to develop a series of policy solutions aimed at tackling the shortage of affordable homes in rural communities.
As part of our project, we’re looking to consult with those who have knowledge and experience in this area and are keen to share it.
“We are working to develop a series of policy solutions.”
Through our research so far, we have identified four key areas where we believe intervention would help to improve the provision of affordable housing, contributing to vibrant rural communities.
They are:
- A need to build more affordable homes in rural areas with a rent-setting policy and allocations policy that works for rural communities;
- Greater support for the cost of building in rural areas, potentially through a grant targeted at rural areas;
- Mechanisms to ensure that land is coming forward for affordable housing and that land owners’ expectations of value are managed. This could include upfront affordable housing targets in local plans;
- A need for a more active approach to planning in rural areas, potentially supported by additional financial resources and expertise to support the development and realisation of local and neighbourhood plans.
Drawing together interventions in these key areas could, if enacted, have a major impact on rural communities. But to make this project a success we want to ensure we hear from all of those with expertise to help us identify the right solutions to the rural housing crisis.
Darren Baxter, researcher, Institute for Public Policy Research
