Citizens Advice and others have pointed to provision of rural housing being a growing problem and a significant barrier to the rural economy, as the average house price can be up to 10% of average earnings, compared with 7.4% in urban areas, excluding London.
Navigating the planning system has always been a problem in rural areas, and larger building providers have been the most successful. CPRE, the countryside charity, has pointed out that successful housing applications tended to be in a very narrow segment of the market—the upper to middle end, which does not favour renters, first-time buyers and affordable housing.
The Government are prioritising the development of brownfield sites, which is certainly laudable, but 87% of these are in urban areas and often in the south-east. However, the economic impact of small developments and, in particular, affordable housing in rural communities can make a huge difference in supporting businesses and communities in terms of employment and other activities. It would also assist with the growing problem of rural homelessness, as identified by Shelter and other charities.
These amendments make strategic housing and market assessments of affordable housing compulsory, and influencing the rate of the infrastructure levy would be of great benefit to the sensible provision of affordable housing in rural areas.