Rural Housing Emergency

Affordable Housing Need 50% Greater in Rural Areas, Report Reveals

England’s rural communities are experiencing an affordable housing crisis of unprecedented scale, with the need for affordable homes is more than 50% higher than in urban areas, according to a groundbreaking new report published.

The comprehensive study, "Mind the Gap: How Rural Communities Are Falling Behind on Affordable Homes," conducted by housing experts arc4 Ltd, Rural Housing Solutions, and English Rural, exposes severe and growing housing pressures in rural areas. Utilising arc4’s detailed Rural Affordable Housing Needs Model (RAHNM), the research provides robust, granular data demonstrating that rural settlements require an average of 17 new affordable homes per 1,000 households annually - substantially higher than the 11 homes per 1,000 households needed in urban areas, excluding Greater London.

Contrary to the idyllic image often portrayed, rural England faces acute housing shortages, with the most critical situation found in small villages where there is an annual need reaching up to 19 new affordable homes per 1,000 households, highlighting the particularly intense pressure faced by England’s smallest rural communities.

The human impact of this housing deficit is starkly illustrated by the average waiting times for affordable homes, which in some rural locations extend up to an astonishing 93 years. Such extensive waiting periods effectively deny many current residents any realistic chance of securing affordable housing within their lifetime.

Dr Michael Bullock, lead researcher at arc4 Ltd, stated:

Our rigorous analysis lays bare an unavoidable truth: the affordable housing need is significantly greater in rural England compared to urban areas. Without immediate action, rural communities risk further decline and isolation.

Jo Lavis, Director of Rural Housing Solutions, emphasised the broader social implications:

The chronic shortage of genuinely affordable homes is hollowing out our villages, driving young people away, and leaving essential local workers unable to live nearby. This crisis threatens not just housing security, but the very survival of vibrant rural communities.

Martin Collett, Chief Executive of English Rural, echoed the urgency:

The report’s findings serve as a wake-up call demanding immediate government action. Rural housing associations are poised to deliver solutions but require significant policy reforms and targeted investment to address these unique rural challenges.

Last week’s announcement by Chancellor Rachel Reeves of a £39 billion programme to boost affordable housing represents a potentially transformative investment in addressing the broader housing crisis.

However, while this significant injection of funds has been warmly welcomed by housing organisations, including the National Housing Federation, it remains unclear how this programme will specifically address the acute and distinct challenges faced by rural communities. Given that the need for affordable housing is particularly severe in England’s rural areas, as demonstrated in this report, there is an urgent requirement for clarification and targeted commitment to ensure rural communities are not overlooked in this landmark initiative.

The report identifies several critical factors driving the rural housing crisis, including:

• Higher Prices, Lower Pay: Dominance of high-priced detached homes in village markets, coupled with wages significantly below urban levels, creates a severe affordability gap.
• Limited Tenure Options: Affordable housing constitutes only 9% of housing stock in rural areas compared to 17% in urban settings, drastically limiting options for low-income households.
• Insecure Private Rental Market: The rural private rental sector is increasingly unaffordable, insecure, and diminishing as properties convert to holiday lets, exacerbating the crisis.

The authors propose a comprehensive "Rural Affordable Housing Package" to urgently address this escalating issue:

• Planning for Parity: Empowering local authorities to mandate affordable housing contributions on developments of ten or fewer dwellings.
• Unlocking Land Supply: Abolishing Capital Gains Tax on land sold for rural affordable housing developments.
• Matching Grants to Needs: Setting national targets for rural Affordable Homes Programme completions and increasing grant rates for smaller rural schemes.
• Leveraging Devolution: Incorporating specific rural housing targets in Combined and Mayoral Authorities' strategies.
• Boosting Local Capacity: Funding a national network of Rural Housing Enablers and Community-Led Housing Advisers to accelerate and enhance delivery.

The "Mind the Gap" report underscores the critical need for decisive action to secure the future of England's rural communities, economies, and social networks. For full access to the detailed findings and recommendations, please read the report here.

An infographic can be found here.