Rural housing prices outstripping affordability

A recent report has revealed that over the past decade, rising house prices in the English countryside have driven more than half a million people into renting. According to the County Councils Network, there has been a 19% increase in rural renting, surpassing the rises observed in London and other cities across England. 

The average house price in rural counties now stands at £309,000, making them the most unaffordable areas outside of London. Compared to the average rent in the UK which is currently £1,220 per month after 8.3% growth in the last year

Meanwhile, the government has expressed its commitment to establishing a fair housing system.

In regions like the Cotswolds, traditionally favoured by the wealthy and famous, local residents are grappling with being priced out of the property market. 

The Gloucester Rural Community Council (GRCC) has been addressing this widespread issue. Cara Loukes, the GRCC's affordable housing manager, highlighted the impact of holiday lettings and second-home purchases, which have reduced the availability of long-term rental properties. Consequently, more individuals are being forced to join council waiting lists, with the development of new affordable rental homes taking years to materialise.

This leaves those on lower incomes with limited options, often resorting to unstable living arrangements such as sofa-surfing or residing in inadequate housing conditions.

The recent report by the County Councils Network (CCN) paints a stark picture of the housing landscape in rural areas. Between 2011 and 2021, the number of households in private and social rental properties increased by 550,000. 

Currently, rented properties constitute almost one-third of all housing in England's county council regions. Private renting experienced a 31% surge, surpassing London's 25% increase. Additionally, property prices in these counties are now significantly unaffordable, averaging over £309,000. Council housing waiting lists in rural areas rose by 10% between 2018 and 2023, while the use of temporary accommodation increased by 52% over the past five years. 

Moreover, rural homelessness saw an 18% rise over the last three years.

Acknowledging the worsening housing crisis, the CCN is urging the government to devise a new plan for rural housing, prioritising social housing and reassessing the impact of the right-to-buy policy. The Department for Levelling Up, Housing, and Communities emphasised its commitment to addressing these challenges by allocating £10 billion to boost housing supply and £11.5 billion to provide more affordable homes. While last year saw the delivery of approximately 234,000 new homes, the government maintains its target of building 300,000 homes annually. 

Additionally, the Renters Reform Bill aims to establish a fairer private rented sector for both tenants and landlords, but has been moving through parliament at a glacial pace.

 The government asserts its dedication to creating a housing system that caters to the needs of all individuals, regardless of their location, income level, or housing tenure.

But the ever-increasing demand for affordable housing remains and is unlikely to be remedied in this or the next governments residency.