Affordable Rural Housing

Affordable Rural Housing is housing provided in rural parishes where there is a need from people on lower incomes who are unable to meet their housing needs in the general housing market.

If there is evidence of housing need, shared ownership properties and/or rented homes may be provided by a Housing Association (Registered Social Landlord, or RSL). The RSL is able to provide housing at affordable levels as they receive grant funding from the Homes & Communities Agency towards the development costs.

Depending on local needs, some of the affordable homes may be for social rent (at a weekly rent that is affordable to people on low incomes); while others may be made available for sale on shared ownership terms (usually with a mortgage requirement of around half their market value). Shared ownership or sometimes fixed equity homes may be provided, which are partly owned by the RSL and partly purchased by the resident (usually with a mortgage). In the case of shared ownership, the resident will also have to pay rent on the part owned by the RSL. For fixed equity schemes, the resident does not pay any rental share initially, but may have to start paying rent after a period, usually 3 years. Both schemes require the purchaser to obtain a mortgage, so there is a minimum income level.

The rents charged on social rented homes are subsidised under each Housing Association's rent policy.  In 2008, rents on a typical rural scheme were £68 - £73 per week for a two bedroomed flat, £75 - £78 per week for a one bedroomed bungalow, £78 - £83 per week for a two bedroomed house and £83 - £90 per week for a three bedroomed house. The type and size of homes to be provided on any particular rural scheme will depend on the needs information indicated from the survey of local housing needs.

Affordable housing scheme can make a huge contribution to a parish, by not only meeting the housing needs of local people, but by helping to maintain the viability of services and amenities in the parish.  It can also help maintain the social balance and social networks.

The first step towards securing affordable housing in your parish is to contact the Worcestershire Rural Housing Enabler (RHE) based at Community First - an independent charitable body working with rural communities to facilitate rural housing schemes. The post is funded from various sources, including Worcestershire County Council, four Local Housing Authorities and seven Housing Associations.

The RHE's role is to encourage Parish Councils and local communities to help identify housing need and engage with the process of developing affordable housing in their parish - and then to support and assist the Parish Council and local community through the process.  A major part of the role is to liaise with all the parties involved in the process.

If necessary, a survey of local housing needs can be commissioned and carried out with the support of the Parish Council and the results will indicate the amount and type of affordable housing that is required in each village.  By asking local people who are in housing need for details of their income and housing preference, a proposal can be drawn up for each village on the amount and type of affordable housing required to meet local needs.

Rural housing schemes are traditionally difficult to develop and each site is different, so it can take several years from the housing needs survey to occupation of the homes. Should the Parish Council secure a scheme which does not fully cater for the level of need in the village, they can always promote another scheme, but they may have to repeat the whole process from the beginning, including a new Housing Needs Survey.

Planning policy permits greenfield development adjoining the settlement boundary ("exception sites") under certain circumstances, and providing the following criteria are in place:

• The proposal accords with the adopted Development Plan for the area
• The planning application is supported by evidence of housing need
• The new homes provided will be kept affordable for local people

Any proposal made will be subject to the planning approval process, including consideration of highway safety, sustainability, and impact on open countryside. If the site is within an Area of Outstanding Natural Beauty then stricter planning controls may apply.

Development of an "exception site" will not set any precedent for building market housing outside of the settlement boundary.

One of the conditions of planning permission for an affordable housing scheme is that a Section 106 agreement (or "s106") sets out the requirements that must be met. In addition to the affordable homes, the conditions could include a financial contribution towards sustainable transport improvements, or open space or play facilities.  For rural schemes, the s106 will include a requirement to keep the houses for local people, and to keep them affordable in perpetuity. In villages with a population of less than 3000, all shared ownership units will be retained for local people, as purchasers will be allowed to buy no more than an 80% share of the property.

How can we be sure that properties will be allocated to local people?

The homes will be allocated through the Home Choice Plus housing register. It will be important that the Parish Council understands the lettings process and are able to advise local people.

The RSL will decide who is in the greatest need out of those applicants who have a local connection as defined in Malvern Hills District Council's Rural Allocation Policy. Locally elected District and Parish Councillors will observe the allocation process.  Verification of an applicant's local connection will be undertaken by the RSL, which may include a home visit if necessary.

Affordable homes on an exception development must be kept for local people and the s106 agreement is legally binding to the Housing Association and to the Local Authority. Applicants must be in housing need and have to have a local connection to be allocated a property. If no one with a connection to the parish applies, then applicants from neighbouring parishes can be considered..

The s106 agreement ensures that all future lettings (and shared ownership sales) meet the same local connection criteria as when the homes were first built.  However, tenants can seek permission from their landlord to exchange their home with another social housing tenant, possibly from another area.

Why are Housing Needs Surveys required when there is already a Home Choice Plus housing register?

Many people who live in rural settlements believe that affordable housing will never be built there, so they do not join the Housing Register.  If the need was solely judged by the register, it would underestimate the number of people in housing need, and too little or perhaps no housing would be provided. Surveys of local housing needs almost always identify some people who are in need, but have not joined the register.  A Survey can also help in consulting with the parish community, and the process may help to bring forward land for development sites.

The Rural Housing Enabler will work with the Parish Council to undertake a survey of every household in the parish to establish the unique needs of each rural community.  A standard questionnaire has been designed by Community First but this can be modified as necessary through discussion with the Parish Council. Analysis of the returned questionnaires is carried out by Worcestershire County Council's Research & Intelligence Department, to ensure the validity of the result. This is important for both obtaining planning consent and the funding of rural schemes.

Questionnaires can also be made available to local people who have had to move away to find an affordable home, but are known to want to return. Those respondents who are in housing need are encouraged to give their names and contact details. They can then be sent an application for the Home Choice Plus housing register to apply for affordable housing.

More information on developing an affordable rural housing scheme can be found in the booklet Affordable Homes Toolkit or by contacting the Rural Housing Enabler or the Housing Enabling Officer from Malvern Hills District Council.