Rural landowners should be playing a more crucial role in solving England's housing crisis, according to a new report.
Rural communities are particularly hard-hit by dwindling affordable housing stock: 8% of rural housing is classed as affordable compared to 20% in urban areas. This has seen the average age in rural communities rise as young people are priced out, and services like post offices, pubs and shops have closed.
"The rural housing crisis in acute. There is less affordable housing in rural areas than in urban settings," the report by Campaign to Protect Rural England said.
"Landowners can either work with a housing association to bring forward rural housing developments or, alternatively, develop and manage the housing themselves. Yet there are barriers that are preventing landowners from making development happen.
"For a scheme to be attractive to a landowner and acceptable to the local community, an alternative lettings system prioritising local tenants may be sought."
"Two key amendments should be made to the taxation system to create incentives for landowners to invest in rural affordable housing: income tax relief for excess of expenditure over income earned and capital gains tax rollover relief."
The paper proposed fewer tax barriers that discourage landowners from providing affordable housing.
"The current tax system is unfavourable to landowners who let their land to housing associations or directly to tenants. The paper suggests measures that would see landowners paying reduced tax on profits from providing affordable housing, and being able to offset losses from these investments against other taxable income."
Government 'must do more'
Trinley Walker, policy and research adviser at the Campaign to Protect Rural England, comments: "Landowners understand the pressures facing rural communities, and they are uniquely placed to help keep these towns and villages thriving. There is a clear appetite among landowners to help create affordable housing for local people, but the current system discourages them from doing so.
"Government must do more to address the lack of affordable housing in rural areas. Removing some of the obstacles preventing landowners from providing land is a straightforward way to get more houses built for those who need them."
CLA President Ross Murray said landowners have 'strong multi-generational ties' to their communities and are often local employers.
"Landowners are well-placed to help increase the supply of affordable homes. We want life in our villages – to support young families, local workers and those in the community who are ready to downsize. At a time when housing costs are spiralling, providing more affordable housing is an excellent way to sustain rural communities for future generations and ensure people have the opportunity to live and work in the countryside."
To support rural landowners in providing land for affordable housing, the new paper proposes giving landowners power to ensure that their land will benefit people with local connections.
"Landowners would be more inclined to provide land for affordable housing if they had more confidence that this would directly benefit those in their local community. The paper suggests changes to letting systems, many of which currently don’t allow for prioritising local tenants," Mr Murray said.
