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Families in rural areas are spending nearly a third of their income on rent, IPPR finds

Families in rural areas are spending nearly a third of their income on rent, research by the Institute of Public Policy Research (IPPR) has revealed.

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Families in rural areas are spending nearly a third of their income on rent, IPPR finds #ukhousing

In a report published today to mark Rural Housing Week the IPPR found there is an affordability “crisis” in rural areas where the average house price is £320,700, more than £87,000 higher than the urban average outside of London.

The research also found:

  • Rural housing is less affordable to local people than in most urban areas. A family with one child, and earning one full-time and one part-time median wage in a mainly or largely rural area, would spend 31% of their income on rent, compared with 26% (for people on full-time wages) or 19% (for people on part-time wages) of their incomes in most urban local authorities
  • Only 8% of the housing stock in rural areas is affordable, compared with 20% in urban areas, and current delivery is failing to provide enough new homes

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The IPPR analysis also found the population in rural areas is set to age rapidly over the next two decades. Between 2014 and 2038, the working-age population in rural areas is projected to decline by 75,000 people while the population aged over 65 will grow by around 1.5 million.

Darren Baxter, researcher at the IPPR, said: “The high cost of housing in rural areas poses a threat to rural life. Without somewhere affordable to live, young people will leave the countryside, services will close and villages could face terminal decline.

“An ambitious programme of rural house-building could not only have benefits for individuals but could enhance whole communities, halting the decline in rural life.”

Luke Murphy, associate director for the environment, housing and infrastructure at the IPPR, said: “A lack of affordable housing is often seen as only an urban problem, but it is a critical issue in rural areas too, where housing is less affordable than in most towns and cities.

“At the heart of this crisis is a huge shortage of affordable homes and the failure of successive governments to develop policies which meet the needs of rural areas.

“We are calling for a new deal on housing for rural communities. This must include a new rural affordable homes programme, reform of the planning process to allow for the provision of affordable homes in villages and a commitment to put the needs of rural areas at the heart of government policymaking.”

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