Rural housing alliance unveils groundbreaking research on affordable housing delivery

A new study has revealed critical factors affecting rural affordable housing supply.

Trent & Dove and Rural Housing Solutions’ new report, "There’s a Will—Here’s the Way", highlights the significant challenges and opportunities in developing affordable housing in rural areas.

The research is considered critical as rural communities face increasing pressures from housing shortages, rising development costs, and complex planning processes.

The report draws on in-depth interviews with 11 Registered Providers (RPs), including Strategic Partners and non-strategic Partners.

Key findings reveal that while there is a willingness to develop rural housing, barriers such as financial viability, additional rural-specific costs, and planning delays impede progress.

The report indicated that only 9 per cent of the housing stock in rural communities (populations of 3,000 or fewer) is made up of affordable homes, compared to 17 per cent in urban areas.

Small-scale rural developments also face unique cost pressures, including higher per-unit costs due to the inability to achieve economies of scale, rurality and remoteness, and the added requirements to meet Net Zero, biodiversity goals, and nitrate neutrality mitigation.

Additionally, while non-strategic partners, particularly rural-specialist housing associations, remain committed to developing in small rural communities, larger strategic partners tend to focus on large developments in more accessible rural areas where financial viability is easier to achieve.

Local planning authorities often lack the capacity and resources to support rural schemes, leading to long delays and higher risks for developers.

Recommendations of the report include an Introduction to a targeted "Rural Multiplier" to offset the higher costs associated with rural schemes and introduce a rural programme approach for developments of fewer than 15 homes.

This would help ensure the financial viability of these projects and support the move to Net Zero.

The recommendations also aim to set national targets for Homes England, including a goal that at least 10 per cent of Affordable Homes Programme completions are delivered in parishes with populations of 3,000 or fewer.

Other policies include introducing a rural exception site planning passport to reduce costs, risks, and delays for rural schemes and encourage more registered providers to engage in rural development, and increasing resources for planning teams and rural housing enablers to provide the critical groundwork needed to advance rural housing schemes.

Additionally, the report also recommended appointing a senior rural housing champion within Homes England to ensure rural issues receive the attention and support they need.

Ursula Bennion (pictured), CEO of Trent & Dove, and a member of the Rural Housing Alliance, said, "Our findings demonstrate that housing providers are willing to build in rural areas but face significant financial and logistical challenges. To overcome these, we need targeted policies, improved grant funding, and stronger planning support.”

Jo Lavis from Rural Housing Solutions said: “The research shows that rural affordable housing schemes may be small, but their impact is transformational for local communities. By addressing these barriers, we can deliver the homes needed to sustain thriving rural areas."

This report calls on Homes England, government departments, and local authorities to act decisively to ensure rural housing development becomes a priority and that these communities do not continue to be left behind.