Acute Housing Affordability Crisis in Rural England

2003 Words5 Pages

1. Outline the scope and key drivers of the current housing affordability crisis in rural England, and assess the effectiveness of planning, now and in the future, in addressing this crisis;

While much of recent discussions of housing affordability in England have been dominated by the rapidly increasing house prices in London, there is an arguably more acute housing affordability crisis in rural England. ‘Rural England’, characterized by Gallent as areas with fewer than 1000 inhabitants per 20 hectares (Gallent et al. 2003), has long had an undersupply of housing, particularly affordable housing, at the same time as a rising demand. This crisis is one in need of urgent repair as it continues to harm the rural communities in which it exists. Rural England faces a myriad of issues, including lack of skilled labour and lack of convenience in accessing necessities such as healthcare and food and retail stores. The rural housing affordability crisis in rural England is interlinked with the other issues it faces. The crisis is a complex and far-reaching issue with many past and present drivers and an irrefutable link to the planning system. This essay will first outline the scope and key drivers of this crisis and will then analyse and gauge the effectiveness of planning in addressing the issue.

Important in discussing the scope of the housing affordability crisis in rural England is taking into consideration housing affordability in England as a whole. A recent survey using ONS data shows that “since 2003 the average house price has gone up by £100,000, whereas the average annual salary has risen by just £6,570.” While this data includes non-rural England including London, “even removing London and the South East the average home h...

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... is vast; on house price to local income basis the affordability crisis affects rural England to a greater extent than urban England. The crisis is driven by a range of factors, including strict land-use policy and conservation groups in rural areas, high mortgage loans for rural housing introduced by lenders in the 1990s and early 2000s driving up house prices, and affluent second-home buyers in rural areas who often support strict land use policy. These factors all either increase demand or help to suppress supply, creating a supply-demand imbalance in rural England, driving up house prices and in this way making the crisis more severe. Recent changes in planning policy have made a start in trying to address the crisis, but more must be done, including trying to grow the rural economy sustainably and easing planning restrictions, for the crisis to be alleviated.

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