Rural housing in England is now so unaffordable that many villages are at risk of dying or becoming the preserve of the rich – according to new research, published the day before the launch of a major report into rural housing.

The new figures, released by the National Housing Federation, show that:

- The gap between prices and local salaries in many rural districts is worsening and substantially above the national average
- In many areas significant numbers of properties are being used as second homes – which squeeze local people out of the housing market
- There are growing waiting lists for social housing in many rural areas.

The Federation research also shows that the Scottish Executive spends ten times as much on rural homes as the English administration.

Liberal Democrat MP Matthew Taylor will soon publish a report into rural housing, commissioned by Gordon Brown last year. And the figures from the Federation show that without major changes in rural housing policy, ‘some villages will die, others will become dormitories and others will simply become very poor’.

In ten of the least affordable rural areas, the average house price is now more than 15 times the average local income – compared to a national average differential of 11.

- In South Bucks, the average house price is £525,313, while the average local income is £21,835 – which means house prices are 24 times local salaries, up from a ratio of 18 in 2002
- In the Cotswolds, the average house price is £328,980, while the average local income is £16,630 – a ratio of 19.8, up from 13 in 2002
- In Chichester, the average house price is £328,932, while the average local income is £17,144 – a ratio of 19.2, also up from 13 in 2002.

In two rural areas, Restormel, in Cornwall, and North Devon, the number of households on social housing waiting lists – 5,119 and 4,340 respectively – outnumbers the entire local stock of social homes, which means that even if the number of social homes in each area were doubled there would still be local people waiting for a social home.

Of the 50 authorities with the highest percentage of second homes, 35 are rural.

- In the Isles of Scilly, 18.9% of homes are second homes
- In South Hams, 9.9% are second homes, and
- In North Cornwall, 9.4% are second homes.

While the problems around rural housing in Scotland are being tackled through a determined drive north of the border, the Federation says that the same level of attention is not being applied in England.

Based on a like-for-like comparison, the Federation has found that rural social housing grant allocation per person living in a rural area is £134 in Scotland, £20 in Wales and £13 in England.

Federation Chief Executive David Orr said: “The English countryside is in crisis, with affordability getting worse and more people being forced out of the villages in which they grew up.

“Unless more homes are built in rural areas, some villages will die, others will become dormitories for the rich and others will simply become very poor – because economic activity there will be squeezed out.”

The Federation, which represents England’s housing associations, believes that to prevent a rural catastrophe:

- The Government must increase its long term target for new rural social homes to 9,000 per year
- Local authorities must be supported in identifying housing need in rural areas, with local planners working with local communities to identify sites for social housing
- Councils must also be instructed that where new homes are proposed in rural areas they must consider whether a village would be a sustainable place in which to live and work if they turn the proposals down.

Mr Orr says he is confident that Matthew Taylor’s paper would recommend some bold measures: “Many villages around the country are dying on their feet, and it is vital that the Taylor Report sets out how to revive them as places in which to live and work.”