Monday, 24 August 2015

Are Rural Homes at Risk from Latest Government Initiatives?

As the Rural Housing Enabler for Berkshire I have grave concerns about the manner in which policy changes are currently being managed by the Government, in sound bites, issued from behind closed doors with little or no transparent consultation.  It would be for the benefit of the rural economy and rural communities as a whole if we could get a single document that spells out the full details of the proposals on rural housing, rather than sound bites that are causing confusing and uncertainty.

Over the course of the summer we have had a number of announcements made by the Government about the increased provision of ‘so-called’ affordable housing.  

In July the Government set-out its plans to extend Right to Buy Housing Association tenants in: Fixing the foundations, Creating a more prosperous nation. 

Does the taxpayer really support the Government’s initiative to sell off the countries assets for a short-term gain?  Surely this only favours tenants who have already had the benefit of subsidised rents.  If they wish to buy a home they can do so on the open market like anyone else. There are now more low-cost options to do so with a range of HomeBuy options available.

Last Thursday a new publication was issued: Towards a one nation economy: A 10 point plan for boosting productivity in rural areas, which proposes to allow Starter Homes on rural exception sites, a planning exception previously reserved solely for the provision of affordable homes in perpetuity for people with a local connection to a rural parish.

These initiatives have the potential to dramatically impact on the provision of affordable homes to the people most in need in rural communities.  This could eliminate homes for affordable rent and reduce the supply of land for future exception sites.  In addition to creating uncertainty with Neighbourhood Planning groups and rural parishes currently planning exception sites to meet local needs.

Today I have written a letter to George Osborne as follows:

“I read with some incredulity the latest Government edict; Towards a one nation economy: A 10-point plan for boosting productivity in rural areas.
Is it now the Government’s intention to redefine ‘affordable housing’ as homes to buy on the open market only?  This seems to contradict the National Planning Policy Framework, which indicates that affordable homes are: 
“Affordable housing: Social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market. Eligibility is determined with regard to local incomes and local house prices. Affordable housing should include provisions to remain at an affordable price for future eligible households or for the subsidy to be recycled for alternative affordable housing provision…
..Homes that do not meet the above definition of affordable housing, such as “low cost market” housing, may not be considered as affordable housing for planning purposes.”
How will your proposed Starter Homes on exception sites be secured as affordable and for local people in perpetuity?  What happens to those people in the community who have no chance whatsoever of accessing a discounted home to buy? Is the Government going to incentivise landowners in some way to bring forward land for these discounted Starter Homes on rural exception sites, or will the developer pay full market value for the land?
I have worked with rural communities for the past 10 years to bring these schemes forward for the benefit of local residents.  Your proposals will undermine the entire concept of the rural exception site.  Why would a landowner provide land at a discount for affordable homes if they can hold out for open market value? 
In rural villages there are few homes to rent, what does exist may now be at risk from proposed right to buy changes. Needy local residents are now unlikely to access a truly affordable home on a rural exception site either.  
Unfortunately, several of the groups I work with have read the sound bites with interest, and without detail. They will put on hold current Neighbourhood Plans and rural exception site projects that may have come forward without this latest snippet.
I await with considerable anticipation the full details of these propositions and how they will be implemented.  Will they go the same way as the recent decision on affordable housing contributions on small sites?  Let’s hope it doesn’t get that far.”

Arlene Kersley
Rural Housing Enabler for Berkshire
CCB
arlene.kersley@ccberks.org.uk
0118 961 2000

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