Right Place, Right Price: Why Affordable Rural Housing Matters

The Fabian Society’s new publication, “Rural Futures: The British Countryside and Its Potential,” has highlighted the urgent issues facing rural communities across Britain, with the lack of affordable homes becoming an increased area for concern. Contributing to this landmark publication, Martin Collett, Chief Executive of English Rural, has set out a compelling case for targeted support and investment in affordable rural housing.

To read the full publication – please click here.

The Rural Housing Crisis: Unique and Acute

Rural areas are grappling with a stark disconnect between local incomes and property prices. Research shows that average property prices are higher in rural areas than in urban ones. As of March 2024, the median price for a detached property in predominantly rural areas was fourteen times higher than median earnings. This affordability crisis is exacerbated by a high number of second and empty homes, 16,900 empty dwellings in rural authorities in 2023 alone, which further reduces available housing stock.

Adding to the challenge is the nature of rural housing itself. Rural areas have a higher proportion of older homes, with 28% built before 1919 compared to 18% in urban areas. These older properties are often harder to make energy efficient, leaving residents with the difficult choice of paying higher heating costs or living in cold homes. In 2022, 20% of rural homes failed to meet the Decent Homes Standard, compared to 16% in urban areas.

Social and Economic Pressures

The shortage of affordable and decent housing has far-reaching social and economic consequences. Rural homelessness has surged by 24% in a single year, and local authority housing waiting lists are growing. There are currently 231,000 households on rural waiting lists—a backlog that would take 82 years to clear at current rates. Only 9% of rural housing is classified as affordable, compared to 17% in urban areas, a disparity driven by decades of underinvestment and the legacy of right to buy.

Without urgent action, rural communities risk losing young people and essential workers, undermining their long-term sustainability.

A Roadmap for Change

Rural advocates have highlighted a clear roadmap to address the rural housing crisis:

Planning Reform: Planning policies must be adapted to rural realities. This includes reducing the size threshold for affordable homes on small sites and requiring local authorities to assess and address rural housing needs. Accelerating the use of Rural Exception Sites—currently underutilised—could unlock significant potential for affordable homes.

Targeted Funding: Securing adequate grant funding from Homes England is essential. The new Social and Affordable Homes Programme lacks a rural target, so a strategic commitment to rural investment is needed. Sustaining a national network of Rural Housing Enablers is also crucial.

Protecting Affordable Homes: New and existing rural affordable homes should be protected from right to buy in smaller communities. This would help maintain the supply of affordable homes and encourage landowners to make land available for development.

Energy Efficiency: Investing in retrofitting older housing stock will improve energy efficiency and reduce running costs for rural residents.

There is a strong case for building more affordable rural homes. By strengthening planning policies, increasing funding, protecting existing stock, and investing in energy efficiency, we can ensure that rural communities remain vibrant, accessible, and affordable places to live and work.