Rooted in Potential: How Building Homes in the Countryside Can Secure Britain’s Future

Introduction: A Vision for a Living, Thriving Countryside 

The image of rural England is a cornerstone of our national identity, evoking rolling hills, picturesque villages, and the enduring strength of close-knit communities. For too long, however, this vision has been treated as a fragile postcard to be preserved, rather than a dynamic landscape brimming with potential. The result has been a narrative of managed decline, where the chief concern is preventing the erosion of a cherished past. 

This report, for #RuralHousingWeek 2025, offers a different vision. It presents a compelling, evidence-based case that the future of our countryside is not a matter of managing decline, but of making a strategic choice to invest in its vast potential. Behind the idyllic facade, a lack of the right homes in the right places has acted as a powerful brake on progress, preventing rural areas from becoming the engines of prosperity and well-being they are capable of being. 

By moving beyond simply acknowledging challenges, this report provides a clear blueprint for action. It demonstrates that investing in genuinely affordable rural housing is not a cost but a high-return investment in economic renewal, social cohesion, and national resilience. It is a call to build a better, more sustainable future for rural communities, ensuring they remain living, working landscapes for generations to come. 

The £315 Billion Engine: Unlocking Rural Britain’s Economic Power 

The conversation around the rural economy has long been dominated by a perception of dependency, overlooking a fundamental economic truth: rural England is a national powerhouse. Far from being a quaint backdrop to our cities, the countryside is a significant and dynamic contributor to the UK economy. The challenge is not its inherent weakness, but the fact that its immense potential remains under-leveraged, held back by a critical shortage of the right homes in the right places. 

The scale of the rural economy is staggering. Predominantly rural areas contribute an estimated £315 billion in Gross Value Added (GVA) to England’s economy, representing 16.2% of the national total. These areas host 549,600 registered businesses–23% of all businesses in England–and employ around 4 million people. This vibrant economic landscape extends far beyond agriculture, with thriving sectors in manufacturing, real estate, and professional services. 

Yet, this powerful engine is not firing on all cylinders. The productivity of England’s rural economy stands at just 86% of the national average. This is not a sign of failure, but a clear indicator of a monumental opportunity. This productivity gap represents a vast, untapped reserve of economic potential for the UK. Closing it would not only revitalise rural areas but deliver a significant boost to national prosperity. The primary barrier preventing this is the chronic lack of affordable housing, which stifles business growth by making it impossible to attract and retain a local workforce. For 50% of rural firms, challenges with staff recruitment and retention are a major constraint on their ability to expand and innovate. 

Investing in affordable rural homes is therefore one of the most direct and effective forms of grassroots economic stimulus available. The return on this investment is not abstract or long-term; it is immediate, measurable, and substantial. Research consistently shows that for every ten genuinely affordable homes built, the local economy receives a direct injection of £1.4 million. This capital creates a powerful ripple effect, supporting 26 local jobs in construction, supply chains, and wider services, while generating £250,000 in revenue for the government. 

This is the virtuous cycle of rural renewal in action. Investment in housing creates local construction jobs. The new homes allow key workers, young people, and families to live affordably in their communities. These residents, in turn, fill vital job vacancies in local businesses, from farms and tech start-ups to pubs and care homes. Their wages are then spent in local shops and on local services, creating a self-sustaining loop of prosperity that strengthens the entire community. 

This is why affordable housing must be seen as a piece of critical national infrastructure, as essential as broadband or transport links. It is the foundation upon which our key national industries are built. A secure, local workforce is the lifeblood of farming and food production, where a lack of housing is cited by the National Federation of Young Farmers’ Clubs as a primary barrier preventing the next generation from entering the industry. It is also essential for a thriving tourism economy–worth over £14 billion and supporting over 222,000 jobs in some rural areas–and for the development of the innovative green economy, which will require a new generation of skilled technicians and land managers living and working in the countryside. 

By providing the homes needed for a dynamic workforce, we can unlock the full potential of our £315 billion rural economy and transform the countryside from a perceived dependency into a powerhouse of national growth. 

Table 1: The Rural Dividend: The Return on Investing in 10 New Affordable Homes 

The Heartbeat of Community: Stories of Renewal and Belonging 

Beyond the powerful economic arguments, the true measure of a thriving countryside lies in the strength and well-being of its communities. Affordable housing is the foundational social infrastructure upon which this well-being is built. It is what allows communities to remain mixed, vibrant, and multi-generational, fostering the social connections that create resilience and a sense of belonging. Behind every statistic lies a human story, and these personal experiences reveal the life-changing power of a secure, affordable rural home. 

For young couples like Abi and Gabriel in Roxwell, Essex, the dream of settling down in the village where Abi grew up seemed impossible. Trapped in an unstable and expensive private rental market, they were forced to move five times in just four years, with their rent costing around £500 per month more than an affordable home. This financial strain made saving impossible and put their dream of starting a family on hold. Their story changed when they secured a home in Glebe Meadow, a community-led development. With a secure tenancy and affordable rent, they finally found the stability they needed. “It’s so nice to be back in Roxwell because ultimately, it’s home,” Abi explains. Their experience is a powerful testament to how targeted housing can reverse the trend of young people being forced out of their home villages, allowing them to put down roots and build their futures. 

The need for a place to belong extends to every stage of life. For Gordon, an 83-year-old resident in Staple, Kent, years of uncertainty as a lodger left him feeling isolated. Finding a secure, affordable home in a small rural development was transformative. For him, the house was more than just bricks and mortar; it was the key to becoming a valued member of his parish community. His simple summary of what his home means to him speaks volumes: “It has given me everything I ever wanted.” His story shows that providing affordable homes for older people is crucial for maintaining mixed, supportive communities where all generations can thrive. 

Even the most acute challenges can be met with compassionate, human-centred solutions. The harrowing reality of hidden rural homelessness is captured in the story of Chris, a man who spent four years sleeping rough in the woodlands of Dorset. His life was turned around by an innovative Rural Housing First pilot programme, which provided him with a home first, and then wrapped flexible support around him. Crucially, it allowed him to remain close to his existing support network–a vital factor for successful recovery. Chris’s journey from the woods to a warm, secure home demonstrates that with the right approach, even the most entrenched forms of homelessness can be solved. 

These stories illustrate a fundamental truth: affordable housing is the keystone that supports the entire arch of rural life. When young families can afford to live in a village, school enrolment grows. When the local workforce can find a home nearby, businesses can recruit staff and prosper. The positive impact is tangible. In one village that built new affordable homes, a resident noted that “the number of children waiting for the school bus outside our house has grown exponentially in recent years!” This is the direct, real-world consequence of investing in housing. It is how we ensure the survival of the vital services that define a community–the schools, pubs, and post offices that have been closing at an alarming rate. By building homes, we are not just providing shelter; we are nurturing the very heartbeat of our rural communities. 

Blueprints for Success: Proven Solutions for Building a Better Future 

The challenge of providing affordable rural homes is not an intractable problem without answers. On the contrary, a toolkit of practical, proven, and scalable solutions already exists. Across the country, pioneering communities and organisations are demonstrating what works, providing tangible blueprints for how to build a better rural future. The issue is not a lack of solutions, but a significant “implementation gap”–a failure to deploy these proven tools at the scale required. By understanding and backing these models, we can turn a challenge into a nationwide success story. 

One of the most powerful tools is the Rural Exception Site (RES) policy. This is a smart planning mechanism that allows for the development of affordable housing on small plots of rural land that would not normally be granted planning permission. The key condition is that the homes are prioritised for local people in perpetuity, ensuring they benefit the community forever. This approach reduces land costs, a major barrier to affordability, and makes small, community-focused developments financially viable. Successful schemes like Goldfield in Warehorne, Kent, show the power of partnership between a Parish Council, a local authority, and a housing association to deliver highly energy-efficient homes for local people. In Miller Lane, Dunsfold, Surrey–an area where house prices are 23 times local incomes–a ‘cross-subsidy’ model was used, where the sale of two market homes funded the construction of six affordable ones, unlocking land and making the project possible. 

Despite these successes, the potential of RES remains largely untapped. A recent study found that only 17% of rural local authorities used the policy between 2021 and 2022. This resulted in just 546 homes being built, when the mechanism could have delivered nearly 3,000. This is not a failure of policy, but a failure of implementation, driven by a lack of resources in local planning departments. 

At the heart of these successful projects are specialist rural housing associations, such as English Rural. These organisations are the delivery engines turning policy into tangible homes. With a deep understanding of the unique challenges of the countryside, they are experts in navigating complex planning regulations and delivering the small-scale, sensitively designed developments that fit the character of rural villages. Unlike commercial developers, their primary mission is social purpose, not profit. This allows them to act as long-term partners for communities, building high-quality homes and then managing them for decades to come, ensuring they remain affordable and well-maintained for future generations of local people. They are, in essence, the stewards of affordability in the countryside.

The most successful rural housing projects are those driven by the community need itself, but navigating the complexities of planning and development can be daunting. This is where the role of a Rural Housing Enabler (RHE) becomes critical. RHEs are independent advisors who act as expert guides and brokers, providing the support needed to turn a community’s vision into reality. They build the crucial relationships between parish councils, landowners, planners, and housing associations. The evidence is clear: where effective RHEs are in place, the delivery of affordable housing schemes is “systematically higher.” The Glebe Meadow development in Roxwell, Essex–home to Abi and Gabriel–is a perfect example. The project was championed by the local Parish Council, but it was an RHE who brought the partners together to make it happen. Recognising their value, the government has provided funding to expand the RHE network, a vital step in closing the implementation gap. 

To tackle the acute crisis of hidden rural homelessness, the Rural Housing First model offers a humane and effective path forward. This approach provides a person with a stable, independent home as the first step, and then wraps flexible, long-term support around them. A groundbreaking pilot study in East Kent has shown how this model can be adapted to the unique challenges of the countryside, allowing people like Chris in Dorset to be housed within their own communities, close to their support networks. It provides a dignified and proven solution to one of the most severe consequences of the housing shortage. 

These solutions form a symbiotic ecosystem. A community wanting to develop a Rural Exception Site needs a Rural Housing Enabler to act as the catalyst. Together, they can create the very homes that a Rural Housing First programme needs to support the most vulnerable. To succeed, policy must support this entire ecosystem, empowering communities with the tools and expertise they need to build their own futures. 

Table 2: Our Toolkit for a Thriving Countryside 

A Call to Action: Seizing the Opportunity for Rural Britain 

The evidence is overwhelming. The shortage of affordable housing in our countryside is undermining the prosperity of rural England and, by extension, our nation. Yet, as this report demonstrates, this is not an intractable problem. The crisis is solvable. The solutions are tested, proven, and already transforming lives and revitalising communities from Kent to Dorset. 

Crucially, they represent a high-return investment. Building genuinely affordable rural homes stimulates local economies, creates jobs, and unlocks the vast, under-leveraged potential of the countryside. The issue now is one of political will and national ambition. Policymakers face a clear choice: continue with a policy of managed decline, where our villages become preserved relics for the wealthy and retired, or make a strategic investment in rural renewal that will benefit the entire nation. 

For Rural Housing Week 2025, we call for a coherent, long-term plan for rural housing, built on five core national ambitions: 

1. Homes Priced for Local People: A commitment to ensure that “affordable” truly means affordable, by linking housing costs directly to what people earn locally, not to volatile and inflated open market rates. 
2. A Secure Future for Rural Homes: A pledge to guarantee the supply of new social-rented homes in rural areas and to protect our existing housing stock from being lost to the short-term holiday let market, ensuring homes are for communities first. 
3. Empowering Communities to Build: A bold plan to scale up the successful Rural Exception Site model, backing it with dedicated funding and promoting flexible approaches that unlock more land for community-led development. 
4. Investing in Expert Local Support: A promise to continue to fund a comprehensive national network of Rural Housing Enablers, giving every rural community access to the trusted, independent expertise it needs to develop its own housing solutions. 
5. A Commitment to Leave No One Behind: A pledge to adopt and fund Rural Housing First services across the country, providing a humane, dignified, and effective answer to hidden rural homelessness. 

By championing these proven strategies, we can turn challenge into opportunity. We can build a future where people are not forced to leave the places they call home, where local businesses can thrive, and where our rural communities are once again vibrant, resilient, and rooted in potential. 

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