The Rural Economy Research Group (RERG) welcomes the Government’s efforts to address housing and infrastructure needs through the new Planning and Infrastructure Bill. However, we strongly believe that for the Bill to effectively address the unique challenges of rural communities, it must take a more tailored approach that prioritises sustainability, affordability, and long-term rural development.
With this in mind, and what we expect to be a mammoth legislative passage through Parliament, we look forward to working with the Secretary of State to ensure it implements the recommendations outlined in our rural housing report.
Rural communities face specific challenges that require targeted solutions. The development of smaller homes, such as one- and two-bedroom properties, is crucial to ensure young people, small families, and aging populations can stay in their communities. With high housing costs and limited availability, these groups often struggle to remain in rural areas. It is essential that the Bill supports the creation of these smaller homes, especially for local residents who wish to stay in their home regions.
A vital tool to meet these needs is the promotion of Rural Exception Sites (RES), which enable communities to develop affordable housing tailored to local needs. The current planning system often creates barriers for developers seeking to build affordable homes in rural areas, leading to missed opportunities. As recommended by the RERG’s group of experts, the Bill should streamline the planning process by introducing a ‘planning passport’ for RES, providing clearer pathways and reducing risks for developers, making the process more efficient and predictable.
The introduction of brownfield planning passports is a welcomed development. This initiative would unlock underused land for development, reducing the need to build on greenfield sites. Focusing on brownfield land in rural areas will help create sustainable communities while preserving our natural landscapes.
The Bill’s provision for strategic spatial planning, allowing multiple local planning authorities to collaborate on development strategies, presents an opportunity to ensure rural areas’ housing and infrastructure needs are met within a wider regional framework. This approach would enable more efficient resource management, minimising the disruption to rural communities.
The Nature Restoration Fund is another important initiative. It aims to create win-win solutions for both the economy and nature by pooling resources for large-scale environmental projects. For rural communities, this provides a chance to secure funding for nature recovery alongside development, promoting a balance between housing and environmental sustainability. The Bill must ensure this integration is a core element of rural development.
Additionally, the proposal to reform compulsory purchase orders is crucial. Ensuring land can be acquired at its market value, rather than inflated speculative prices from hope value, will help reduce costs for developers and local authorities, facilitating affordable housing development in rural areas.
Rural development must take a holistic approach, addressing not only housing but also the infrastructure required for sustainable communities. The Bill should ensure that essential services like healthcare, transport, and education are planned alongside housing. A one-size-fits-all approach to development would exacerbate existing challenges. Rural areas require infrastructure that supports growth and ensures they remain viable in the long term.
The RERG is particularly concerned about the environmental impacts of development in flood-prone areas, especially with the growing risks of climate change. The Bill must incorporate stronger flood prevention measures and ensure that flood-risk developments are carefully managed. In our meeting on housing and flooding last year, the RERG advised the Housing Minister and Shadow Minister that effective flood defences, improved drainage, and floodplain mapping are necessary to protect both new and existing homes in vulnerable areas.
The Government must also reassess its approach to funding rural housing. We call for increased investment in affordable housing, with a focus on council housing and the infrastructure needed for growing rural populations. While recognising the financial constraints of local authorities, Baroness McIntosh and our Parliamentary members now call for developers and landowners to contribute to funding affordable housing and rural infrastructure to ensure long-term sustainable development.
Reforming the planning system is crucial, but it cannot be done in isolation. For too long, housing delivery in the UK has focused on planning reform while the broader housing market has remained largely unchanged. The dominance of large housebuilders has led to the construction of poor-quality, mass-produced homes at a slow pace, resulting in unaffordable, car-dependent developments across rural areas. The housing market needs transformation. Big housebuilders must be held accountable for delivering on their promises and permissions. Supporting small medium enterprise (SME) housebuilders is vital to inject competition, flexibility, and diversity into the housing market, ensuring that affordable homes meet local needs. SMEs need better support to navigate planning processes and access funding without the delays caused by large-scale developers’ slow progress.
Ultimately, the RERG calls for the Planning and Infrastructure Bill to provide housing and infrastructure solutions specifically designed for the unique needs of rural communities. A blanket approach will not suffice. The Bill must be flexible enough to address the realities of rural life, offering solutions that are affordable, sustainable, and backed by the necessary infrastructure. With the right policies, rural communities can thrive, playing a vital role in the broader economy and society.