28 April 2006
More low-cost homes must be built in rural areas to avoid young people being priced out of local housing, says a report from the Joseph Rowntree Foundation.
Just 6% of new rural housing is affordable or subsidised compared with 16% of new homes in urban districts, according to Homes for rural communities, published on April 26. Over the past two years, house building has fallen by 4% in rural areas but risen by 19% in urban areas.
The report, based on recommendations by the foundation's rural housing policy forum, calls for an extra 1,750 social homes to be built annually in smaller rural areas and for 3,000 more in larger areas – double the levels planned by the Housing Corporation.
Although this would require at least £200m more in grant each year, one third of homes built by private developers should be for low-cost ownership, it says. 'The opportunity exists in most rural areas for additional homes to be built and for a significant proportion of the cost to be covered by planning gain mechanisms.'
The report recommends making greater use of proceeds from right to buy sales but suggests the scheme, which has cut the number of rural council homes by 36%, might have to be curtailed. RTB discounts should be withdrawn and councils allowed to impose local occupancy conditions on sales.
PFapr2006
