Radical action urged to end rural homes crisis

Mar 21 2008 by Adrian Pearson, The Journal

THE Government has been accused of failing the region’s countryside after it emerged Scotland was spending ten times as much as England on providing affordable rural homes.

The National Housing Federation has questioned the Government’s commitment to easing the cost of buying a home in rural villages after it was revealed Scotland was spending £134 per person on housing grants, while in England the figure was just £13 per person.

The grant is awarded to housing developers who agree to build cheaper properties. The Housing Corporation, which administers the grant, has contributed to only seven low-cost homes in Northumberland in the last two years.

In Durham, they helped create 37 low-cost homes and in Tyne and Wear 68 homes were built.

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.

The Government’s affordable rural housing target is 3,233 homes a year nationwide – less than half the level recommended by the Affordable Rural Housing Commission, which called for 7,266 affordable homes per year.

Liberal Democrat MP Alan Beith, whose Berwick constituency includes some of the most sparsely populated parts of the country, said the Government was guilty of following an urban bias.

He said: “I think they just do not understand or think about rural people. Just a small increase in the amount of cash available would make a big increase in villages across Northumberland.”

Federation policy leader Jenny Harris 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.”

One suggestion being put forward to Mr Taylor’s inquiry is to increase the council tax on second homes in the countryside and use the money to subsidise affordable homes.

The Commission for Rural Communities, a quango tasked with bringing countryside views to Parliament, said such a tax increase would bring in at least £46m nationwide.

A Communities and Local Government spokesperson said: “We need more homes nationwide, in both rural and urban areas. Last month we announced a new target to deliver 10,300 extra homes over the next three years for rural communities in small settlements.

“Local authorities from all over the country – including those in rural areas – have come forward to support more homes and jobs in their areas and we will be announcing the next round of growth points soon.”