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Government dismisses affordable rural housing opportunity The Office of the Deputy Prime Minister has ruled out the possibility of enabling rural landowners to fund badly-needed affordable rural housing schemes by building a limited number of open-market value properties on the same site.
Mark Hudson, President of the Country Land & Business Association (CLA) commented, "Ruling out the cross-subsidy option for limited open-market housing in the rural exceptions site policy is a great opportunity lost. It is a backward move when the Government is calling for the industry to provide innovative solutions and when public funding levels are limited."The CLA has been lobbying Government for some time not to rule out the cross-subsidy funding method on rural exception sites but the ODPM dismissed this option in the updated housing planning policy guidance published today. Mark Hudson continued, "Closing off this avenue of funding altogether, may also stop those innovative local authorities that have been bold enough to allow cross-subsidy, thus possibly resulting in a decline in the provision of affordable housing for rural areas." "Cross-subsidy is not about landowners making a 'quick buck': it is about the ability and incentive to make land available; it is about removing barriers to enable the private sector, local authorities and the voluntary sector to work together for the benefit of rural communities and the rural economy. Concerns about affordable housing being sold on at a high profit are completely unfounded as such housing is designated as affordable housing in perpetuity. "We are deeply disappointed that the Government has turned their backs on what would have been a common-sense solution to tackle the pressing problem of the lack of affordable rural housing." 24 January 2005 |
Contact Fenella Collins MRICS
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