Demand for new housing 'will be stronger in rural areas' - CRC

Demand for new housing will grow at a faster rate in rural areas than urban districts over the next 20 years, according to a new report from the Commission for Rural Communities (CRC).

In its latest State of the Countryside Update on housing demand and supply, the CRC found that urban districts will grow by 27% between 2006 and 2031 whilst rural districts will grow by 35%.

The research also predicted there will be 356,000 new households added every five years in predominantly rural districts.

Other key findings include:

• On average between 2000 and 2008 21% of new build properties sold were in rural areas.
• Marked proportions of dwellings in rural districts are registered as second homes. On average between 2006/07 and 2008/09 an additional 1,500 dwellings have been registered as second homes in predominantly rural districts every year.
• Between 2007 and 2008 the number of privately owned dwellings left vacant increased by 9.3% in rural districts and 2.8% in urban districts.
• In predominantly rural districts the annual supply of additional affordable housing has increased by 49% between 2004/05 and 2008/09, from 7,000 to 12,800.
• In 2009/10 32% of additional affordable housing for the most rural districts is proposed for settlements smaller than 3,000 people.
• Between 2004/05 and 2008/09 the proportion of all additional social rented dwellings built in predominantly rural districts has increased from 22% to 26%.

In support of the report, the Commission for Rural Communities said: "The CRC recognises that rural towns and villages are growing faster in their resident population than their urban counterparts and average population growth as a whole. 

"To accommodate new growth in our rural towns and villages rural communities should be at the heart of community led planning to deliver housing that meets their local needs.

"We believe that growth, if well managed, will foster more viable local services, more affordable and well designed housing, and appropriate economic development.

"In many respects, England’s rural communities are already leading the way in utilising new technologies, with new businesses start ups often commencing at the home. Housing is providing places to live and work.  But this is not happening everywhere and the CRC has provided well documented evidence which shows that it is often the more vulnerable in rural society that suffer from a lack of housing. 

"Young people, especially young families, and those working in rural areas for relatively low wages, are often the first to be priced out of their own rural communities.

"Losing these groups from rural society undermines the sustainability of many rural villages and towns as essential friend and family network scan be lost or disrupted."

A Communities and Local Government spokesperson said: "We are committed to delivering more affordable homes across the country, which is why we are investing billions of pounds to build the affordable homes we need.

"We are also empowering councils to ensure that that regional plans take full and proper account of the needs of rural communities in providing new jobs, homes and infrastructure."

Conservative Shadow Housing Minister Grant Shapps, said: "This report demonstrates the complete failure of Labour's rural housing policy. Fewer homes built and bigger waiting list.

"By contrast we have set out detailed plans to put local people in charge of building their own communities. Our new ideas like Local Housing Trusts will transfer power to local communities and begin to reverse Labour's housing misery."

Liberal Democrat Shadow Housing Minister, Sarah Teather said: “This report shows that nowhere in the country has been able to escape the dire consequences of Labour’s failure to build more affordable housing.
 
“We urgently need more homes to rescue the thousands of people left languishing on waiting lists.
 
“Tackling the shameful number of properties lying empty and unused would be a good start.

"Only the Liberal Democrats are promising huge levels of investment to bring an extra quarter of a million homes back into use and create vital jobs in the construction industry.”