Affordable Rural Housing

Ben Maguire Excerpts

Tuesday 25th February 2025 Westminster Hall

[Matthew Pennycook]

I think the hon. Gentleman is making a wider point. I am not sure what specific legislative provision he is referring to in the past. There is a very clear place for ensuring we are building the right types of homes in all parts of the country, including homes that support key workers and other frontline public sector staff, and I am more than happy to discuss that matter with him outside the Chamber.

The Government have been clear that we want to look further at measures to support affordable housing in rural areas. That is why we asked a question on that issue as part of the consultation on reforms to the national planning policy framework last year. The responses we received are informing our ongoing work in relation to producing a set of national policies for decision making—national development management policies, as they were referred to under the Levelling-up and Regeneration Act 2023. Although I cannot give my hon. Friend the Member for Reading West and Mid Berkshire a firm date today, I can assure her and other hon. Members that we will consult on those policies in the spring, as promised, and I will update the House in due course.

My hon. Friend also knows that, since taking office, the Government have provided additional grant funding to support the delivery of affordable homes in all parts of England. At the Budget on 30 October 2024, the Chancellor set out details of an immediate one-year cash injection of £500 million to top up the existing affordable homes programme, which will deliver up to 5,000 new social and affordable homes. On 12 February 2025, the Government announced a further cash injection of £300 million to the existing affordable homes programme, which will deliver a further 2,800 new homes, more than half of which will be for social rent.

At the multi-year spending review this year, the Government will set out details of new investment to succeed the 2021 to 2026 affordable homes programme. That new investment will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for social rent. We know that delivering affordable housing in rural places can be especially challenging. There are particular challenges that come with the delivery of sites in rural areas, so that is one of the factors that will be taken into consideration in the design of the future capital investment programme, which will succeed the existing one.

My hon. Friend the Member for Reading West and Mid Berkshire might also like to know that, to provide additional support for rural housing delivery in settlements with populations of fewer than 3,000 people, Homes England has developed a rural housing strategy and has dedicated rural housing champions in each of its operating areas.

My hon. Friend rightly drew attention to the significant contribution that can be made by rural exception sites. As she is aware, these allow local authorities to address the housing needs of rural communities by creating sites where local residents, and others with a strong family or employment connection, can live in affordable homes and in perpetuity. Rural exception sites tend to be just outside village boundaries, where housing is not normally granted permission, so it is possible to create them even in the green belt or designated rural areas. We recognise the strong support for rural exception sites and the potential for strengthening this policy. That is why we made clear in our response to the consultation on the revised national planning policy framework that we are giving further consideration to how we can better support rural affordable housing, including through use of exception sites. That will include consideration of how we can drive greater uptake of rural exception sites and introduce a more streamlined approach. Again, I will set out details about our thinking in due course.

I will take forward this work with my colleagues in the Department for Environment, Food and Rural Affairs, including by considering the role that rural housing enablers play in supporting rural affordable housing. My hon. Friend mentioned a case in her own constituency. Again, I am afraid that I cannot give her any firm assurances in this debate in respect of ongoing funding because that is subject to the Government’s ongoing business planning, but I can assure her that we will provide an update at the earliest possible opportunity.

I want to briefly reference a couple of issues that hon. Members raised, as I have the time. The first is the problem highlighted by my hon. Friend the Member for Reading West and Mid Berkshire of developers and housing associations—in her case, Sovereign—selling off much-needed social and affordable homes in rural areas. She might like to know that when and if grant-funded homes are sold or part-sold, there is a system in place to recover Government grants through the recycled capital grant fund. That means that the cash value of the grant is placed in a fund to be used for further investment in new affordable housing supply. I am more than happy to discuss with her the specific issues with Sovereign in her own constituency.

Briefly, on short-term lets and the existing developer contribution system, Members across the House will know that we have debated this issue at length on various occasions. We are committed to taking forward the previous Government’s measures—a registration scheme for short-term lets and the abolition of the furnished holiday lettings scheme, which comes into force on 1 April—but we have been clear that that is not enough and we are giving very considered thought to what further powers local authorities need, in particular, though there is a balance to be struck, to deal with excessive concentrations of short-term lets that often deny local people not only homes to buy but, increasingly, homes to rent.

On section 106 contributions, we are reviewing viability and we are committed to strengthening the existing section 106 system, in lieu of taking forward the previous Government’s approach, which was an infrastructure levy. When taking those reforms forward, we need to ensure that local authorities are better able to negotiate at the point that those agreements are reached and are then able to ensure that developers honour the commitments that they make in those agreements, when struck.

In conclusion, I again congratulate my hon. Friend the Member for Reading West and Mid Berkshire for securing this important debate, giving the House an opportunity to consider a range of important issues relating to affordable rural housing supply.

[Ben Maguire]

Will the Minister give way?

[Matthew Pennycook]

I will not—I am just winding up, I am afraid.

I hope that I have not only conveyed the Government’s firm support for delivering much-needed affordable housing in rural areas, but reassured my hon. Friend the Member for Reading West and Mid Berkshire and others that I am actively considering what further measures are necessary to ensure that we do so while balancing the need to ensure that development is sustainable and appropriate. I hope I can continue to draw on the insights provided by my hon. Friend and other colleagues, as the Government continue to develop their thinking in this area.

Question put and agreed to.