WIREDGOV

New proposals to tackle rural housing shortages

COMMUNITIES AND LOCAL GOVERNMENT News Release (239) issued by COI News Distribution Service. 8 October 2008

New powers to help keep homes affordable for communities in rural areas were set out today as Housing Minister Iain Wright launched two consultations.

Under the proposed new powers, rural communities with severe housing shortages could be designated as protected areas ensuring affordable housing is retained for local families.

The new proposals would also enable all affordable housing providers in these protected areas to retain a share in new shared ownership homes, or have the first option to buy back such properties, ensuring they remain available for future families in the local community.

In a further step announced today, first-time buyers in rural areas could own a home for as little as £60,000 through a consultation to expand Community Land Trusts. Iain Wright said he wants to see more people being able to cut the cost of getting on the housing ladder through CLTs. Through CLTs, buyers only pay for the building, not the land, of a property. For example, Holdsworthy Community Property Trust in Devon is already offering local people flats that cost £115,000 for prices as low as £59,500.

Mr Wright said:

"In rural areas where affordable housing is scarce and hard to replace, we need to make sure those homes are protected for future generations. And today, we're unveiling new proposals on community land trusts and preserving affordable housing which will help achieve that goal.

"We're providing all the tools so local communities can find a solution that's right for them."

Graham Garbutt, chief executive of the Commission for Rural Communities, said:

"The lack of affordable housing continues to be the single most pressing problem faced by rural people. This is leading to the loss of young people and increasing age imbalance, as well as undermining the sustainability of rural communities. Now is the time to be bringing forward proposals that will make a real difference backed up with funding already allocated to provide affordable homes in rural towns and villages."

Matthew Taylor's recent independent review on rural housing found low supply of housing in rural areas is holding our rural communities back, and recommended a new drive to boost rural jobs and community led affordable housing.

The Government has a national target to deliver 10,300 new affordable homes in smaller rural communities (less than 3,000) over the next three years - part of £8.4bn pledged under our biggest ever affordable housing drive. Funding is also now based on completions to ensure homes are delivered.

But there is also a need for more market homes to meet the needs of our rural communities. The planning policy for housing (PPS3) already puts the onus on local authorities to determine the right level of housing in the right places, taking full account of evidence of local need and demand.

It makes clear that councils can enable small sites in rural areas to be used specifically for affordable housing in and around villages, and provide affordable housing in perpetuity to meet local needs. Councils also have the flexibility to lower the thresholds above which new development should include affordable housing.

Notes to editors

1. The consultation document Shared Ownership and Leasehold Enfranchisement and Designation of 'Protected' Areas can be found at http://www.communities.gov.uk/publications/housing/protectedareasconsultation. The consultation document Community Land Trust: Making It Happen is at http://www.communities.gov.uk/publications/housing/communitylandtrust

2. In 2003 we introduced a new option for billing authorities to give less than 50 per cent council tax discount to second home owners. This has been widely adopted, eased the burdens on permanent residents, and ensured that second home owners make an appropriate contribution to the areas they enjoy.

3. It has meant that last year 251 councils across England have had approximately £100million of additional revenue to spend as they see fit according to local priorities - which could include provision of affordable homes for local residents.

4. The announcement was made at the Housing Corporation's 'Investing in Rural Futures Conference', which addressed issues surrounding rural housing, including investment and the future direction and opportunities for affordable housing in rural areas.

5. As well as Housing Minister Iain Wright, speakers included: Candy Atherton, Housing Corporation Board Member and Chair of the Rural Housing Advisory Group; Sir Bob Kerslake, Chief Executive Designate of the Homes and Communities Agency; and following the launch of his report calling for a fundamental shake-up of planning and affordable housing policy in rural areas, Matthew Taylor MP.

6. Community Land Trusts (CLTs) are independent non-profit distributing trust which own or control land and facilities in perpetuity for the benefit of the community. Funded through the Housing Corporation's National Affordable Housing Programme, most CLT models separate ownership of the freehold of the land and the leasehold of the home, locking up the value of the land, planning gain and other equity benefits on behalf of the wider community. This reduces the cost to buyers while ensuring these properties remain affordable to the community in future.

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