NHF: Federation highlights 'startling' lack of investment in affordable rural homes

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Wednesday, 19, Mar 2008 12:00

The National Housing Federation has called for greater investment in rural affordable housing in England - after finding that the Scottish Executive spends ten times as much on rural homes as the English administration.

In its response to a review commissioned by the Prime Minister into affordable housing and the rural economy, the Federation, which represents housing associations in England, says the gap in spending levels is 'startling' - even allowing for the fact that rural housing is Scotland is spread over more remote areas.

The Federation wants Matthew Taylor MP, who is carrying out the review, to propose radical action by the Government and local authorities to tackle the rural housing affordability crisis. Thousands of people are priced out of villages and market towns where homes are valued at more than ten times local average salaries.

The Federation has found that rural local authorities could make much better use of existing planning powers to create more homes for people on low incomes.

In 2006 the Government introduced Planning Policy Statement 3 (PPS3) to place affordable housing at the heart of the planning system. Councils are expected to show how they are incorporating PPS3 into their Local Development Plan.

But the Federation's members have reported that implementation of the policy is patchy, and in some places very weak. While there are some examples of good practice, other rural local authorities have yet to introduce their Local Development Plans, let alone robust Section 106 policies.

Jenny Harris, policy leader at the National Housing Federation, said: "The affordability crisis has hit rural communities hard. Even in a housing market slowdown, prices in our villages and market towns remain far out of the reach of people on average incomes.

"Ending our critical homes shortage does not mean we have to concrete over the countryside. Just five or six much-needed homes per village will help keep schools open and local economies working. Our members want to work with communities to help tackle the crisis together. We have the best track record on design and environmental sustainability in the whole house building industry and we can help ensure these rural homes stay affordable in the long term.

"Housing associations are ready to step forward and deliver - we need our central and local government partners to do the same."

According to the Federation's submission, one housing association in Wiltshire recently had applications from 201 people for just two new affordable six-bedroom homes - illustrating the scale of housing need in rural communities.

And yet the Government's recently announced affordable rural housing target is 3,233 homes per year - less than half the level recommended by its last independent inquiry into rural housing affordability, chaired by Elinor Goodman, which called for 7,266 new affordable homes per year.

While the Government last year made a welcome 30% increase in its overall budget for social housing, it has only raised its rural homes allocation by10%.

And new analysis by the Federation has found that affordable rural homes cost 13% more to build than urban dwellings. This is because they are built on smaller developments where it is harder to achieve economies of scale, the homes tend to be bigger, and planners are more likely to specify that expensive materials and high design specifications are used.

Based on a like-for-like comparison, the Federation has found that rural social housing grant allocation per person living in a rural area is £134 in Scotland, £20 in Wales and £13 in England.

Ends

For further information contact:

Joe Dumont, joed@housing.org.uk , 020 7067 1028 / 07990 638946 Paul Rees, paulrees@housing.org.uk , 020 7067 1026 / 07974 826587

Notes to editors

The National Housing Federation represents 1300 independent, not-for-profit housing associations in England. Together, our members provide two million affordable homes for around five million people. www.housing.org.uk