Concern at Government's plan to boost starter homes in rural areas

The government has published its first Rural Productivity Plan to grow the rural economy.

Villages and towns in England’s rural communities will be allowed to build starter homes for local residents as part of plans set out by the Chancellor of the Exchequer, George Osborne, and Environment Secretary, Elizabeth Truss in the Government’s first ever Rural Productivity Plan.

The plan, announced as latest figures show thousands of people are moving to rural areas, will set out measures to boost the rural economy by investing in education and skills, increasing wages, improving infrastructure and connectivity, and simplifying planning laws for rural businesses and communities.

Measures covered by the plan include:

• Amending planning rules to allow Starter Homes to be built on Rural Exception Sites for the first time. This will allow local areas to allocate more sites for Starter Homes specifically for people who already live in the area, or have an existing family or employment connection to the area.
• Working with private sector providers to assess alternative solutions to deliver broadband further into rural areas.
• Improving rural transport connections by feeding the views of rural stakeholders into the second Road Investment Strategy for 2020 to 2025.
• Ensuring fairer funding for rural schools and work with schools and colleges that are currently underperforming or ‘coasting’ to ensure that, where appropriate, they are entering into collaborative arrangements and formal partnerships to raise standards.
• Encouraging rural Local Authorities and providers to make innovative early expressions of interest to deliver 30 hours of free childcare to working parents.
• Setting a new ambition to provide high speed broadband to businesses in all Enterprise Zones in rural areas.
• Considering proposals for increased devolution of powers and greater freedoms to maximise economic growth in areas across the country that put in place strong and accountable local governance.
• Improving connectivity by providing improved transport connections for businesses and passengers in local areas with fifteen brand new routes on the Regional Air Connectivity funding shortlist.

Together, the Government claims, these steps will boost productivity and ensure the countryside becomes an even more attractive place for people to live, work, start a business and bring up a family.

However, Lucy Grove, Head of Policy at the National Housing Federation, said: “Young people and families are being priced out of rural villages and market towns across the nation by an acute lack of affordable housing and key infrastructure. This is draining our countryside of its vital workforce and hurting rural businesses.

“(This) announcement is a welcome step in the right direction. Homes at prices to suit a range of incomes and personal needs, including Starter Homes, are needed in communities up and down the country to ease the rural housing crisis. Housing associations are valuable partners for government to get these homes built.”

Communities Secretary Greg Clark said: "We’re determined to ensure anyone who works hard and aspires to own their own home has the opportunity to do so – whether they live in cities, towns or rural communities.

"But all too often young people find themselves exiled from the place they grew up as they are forced to move away to find a home of their own.

"That’s why we’re putting power directly in the hands of rural councils to give the go-ahead for new Starter Homes in their area so local young first-time buyers can continue to be a vital part of their communities."