The Provision of Affordable Rural Housing

In recent years the provision of affordable rural housing has gained increased attention as an undervalued and underexplored area for growth and opportunity in the countryside. This was refocused in 2024, when the government announced its ambition to grow the housing stock in Britain by 1.5 million new homes over the course of the next parliament.

On February 25, 2025, a debate held in Westminster Hall highlighted the importance of addressing the housing needs of rural communities. Noting the challenges faced and opportunities presented, MP’s discussed a number of important opportunities for growth including the Rural Exception Site approach and the Rural Housing Enabler project, with insights from Minister for Housing and Planning, Matthew Pennycook.

The Importance of Affordable Rural Housing

Affordable housing in rural areas is essential for maintaining vibrant and sustainable communities. The countryside faces unique challenges when it comes to housebuilding, such as limited access to services, higher construction costs, and restrictive planning policy. These factors contribute to a shortage of affordable housing, making it difficult for residents to find suitable homes and stay in the areas they have grown up and have built lives in.

Only 9% of homes in rural England are classified as affordable housing. This is contrasted to urban areas where 19% of homes are classified as affordable.

23% of villages with populations of 300 to 3,000 have two or fewer social housing homes and the number of rural households on local authority waiting lists in England increased by 31% between 2019 and 2022, exceeding the increase in predominantly urban areas of 3%.

During Monday’s debate, it was emphasised that affordable rural housing is not just about providing shelter but also about supporting the local economy and ensuring that rural communities can thrive. The availability of affordable housing helps retain young people and families in the countryside, helping to sustain mixed communities that include all age groups and income earners.

Rural Exception Site Approach

One of the key initiatives discussed during the debate was the Rural Exception Site (RES) approach. This allows for affordable housing to be built on land that would not normally be considered for development, provided that the housing meets the needs of the local community and remains affordable in perpetuity.

Rural Exception Sites are typically located on the periphery of smaller rural communities with populations of 3,000 or fewer. These sites are selected because they fall outside the local authority’s designated development zones, thus making them “exceptions” to standard planning regulations. Even within protected areas like the Green Belt, Areas of Outstanding Natural Beauty (AONB), and National Parks, these sites can be considered for development as long as they comply with other policies outlined in local plans and the National Planning Policy Framework (NPPF).

Rural Housing Enabler Project

Another important initiative discussed during the debate was the Rural Housing Enabler (RHE) project. This project aims to support the development of affordable housing in rural areas by providing expert advice and assistance to local communities and housing providers.

The Rural Housing Enabler project has been a vital resource for rural communities, offering guidance and support throughout the development process. By working with local authorities and housing providers, the project has helped to identify suitable sites, secure funding, and navigate the complexities of affordable rural housing development.

The RHE project has been successful in bringing together various stakeholders to address the housing needs of rural communities. By providing tailored support and expertise, the project has enabled the development of affordable housing that is both sustainable and responsive to local needs.

The project is funded through the Department for Environment, Food and Rural Affairs (DEFRA). Funding for the project has received a commitment through to March 2025, with countryside advocates calling for an extension to safeguard this proven and valuable role.

Affordable Housing and the Future

The debate on affordable rural housing highlighted the importance of addressing the unique challenges faced by rural communities.

In his closing remarks, Minister for Housing and Planning, Matthew Pennycook emphasised the government’s commitment to improving the quality of life for people living and working in rural areas. He reiterated the government’s ambition to deliver the biggest increase in social and affordable housebuilding in a generation. Pennycook also highlighted the importance of ensuring that rural communities see the development they need to reflect local needs and sustain thriving places – all of which are welcome comments.

He also mentioned that the government is considering further measures to support rural affordable housing, including the role of Rural Exception Sites and wider exceptions site policy, as well as noting that DEFRA is considering the role that rural housing enablers play in supporting rural affordable housing.

The minister could not give any firm assurances in relation to the ongoing funding of the RHE project as the government business planning is underway, but assured that “we will provide an update at the earliest possible opportunity.”

“We know that delivering affordable housing in rural places can be especially challenging” – Minister for Housing and Planning, Matthew Pennycook

Also acknowledged were the unique challenges faced by housing providers and developers in rural areas. “We know that delivering affordable housing in rural places can be especially challenging,” he said. “There are particular challenges that come with the delivery of sites in rural areas, so that is one of the factors that will be taken into consideration in the design of the future capital investment programme, which will succeed the existing one.” Capital investment through Homes England, the non-departmental public body that funds new affordable housing in England, provides housing associations and developers with crucial funding to help mitigate the unique challenges of rural housebuilding.

By continuing to support and expand these initiatives, and with the government’s commitment to addressing the housing needs of rural communities, we can ensure that everyone has access to safe, decent, and affordable housing.