Farming and Rural Communities

Lord Best Excerpts

Thursday 3rd April 2025 Lords Chamber

[Lord Best (CB)]

My Lords, I thank the noble Lord, Lord Roborough, for initiating this timely debate and I am delighted to follow the noble Baroness, Lady McIntosh, who is such a champion for rural communities.

My comments address the impact of the Government’s economic and planning measures on the critical issue of housing in rural areas. I will draw on the work of the Devon Housing Commission, which I was delighted to chair and which reported last year.

The shortage of secure, decent, affordable homes is creating particularly acute difficulties for employers in the private and public sectors in rural communities. But rural areas have half as much social housing—from councils and housing associations—as elsewhere: only 9% of the stock, compared with 17% in the country as a whole.

The 25 to 35 year-olds are moving away from many rural areas, not just because they cannot compete with house purchasers moving from other places, but because private sector rents are beyond the reach of even those on average incomes. Without a workforce, local businesses and public services inevitably decline.

The Government are taking action in respect of some of the recommendations of the Devon Housing Commission, but really need to go further. First, the affordable housing programme needs adequate funding. The Government have found a very welcome extra £800 million, but their agency, Homes England, should recognise the special value of investment in rural areas: 10% of total grant funding should be earmarked for rural housing associations and local community land trusts.

Secondly, in rural areas, as elsewhere, the Government are tackling the delays and blockages caused by inadequate resources for planning departments. The Planning and Infrastructure Bill should speed up and increase delivery, and local government reorganisation should ease the pressures created by having a multiplicity of planning authorities in some rural areas. Devon, for instance, has 10 local authorities with planning responsibilities, which, in future, will be combined into unitary councils to streamline local processes.

Thirdly, there is the need to address the loss of properties available for long-term letting to local people in many rural tourist hotspots, caused by landlords switching to Airbnb-style short-term lets. The Government are committed to a registration scheme, and they have consulted on the creation of a new use class, which would require planning consent before tenancies can be converted to short-term lets. I have tabled an amendment to the Renters’ Rights Bill to move this forward.

Fourthly, as recommended by the Devon Housing Commission, Defra has announced further funding for rural housing enablers, which are hosted by rural community councils. These RHEs play a crucial role in brokering small village schemes with all the relevant parties—housing associations, planners, landowners, the parish council, et cetera. However, Defra’s commitment has been for only 12 months at a time, inhibiting recruitment of these enablers; a five-year programme would be much better.

Fifthly, there is the unique planning tool of rural exception sites, which enable planning consent to be granted for development exceptionally, precisely because the homes will serve local needs. These developments can produce delightful, affordable, sustainable homes for local people, replenishing the local primary school and rejuvenating the local community. It would be good to see the Chancellor encouraging landowners to make sites available for more of these village schemes through tax reforms, as advocated by the Country Land and Business Association.

In conclusion, both the building of new homes that are unaffordable to local households and the flipping of accommodation for rent to short-term lets and second homes risk rural communities becoming enclaves of older, more affluent owners. These trends are stifling economic growth, as well as eroding long-established rural communities. Can the Minister assure the House that the Government will support more of the excellent local social housing schemes, which can do so much to sustain and revitalise local economies and rural communities?