Commons Sense

House of Commons · Westminster Hall

Rural Housing Targets

29 January 2025 · 14 other contributors · 13,489 words

Opened by Damian Hinds Con East Hampshire

Responding minister: Matthew Pennycook

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Damian Hinds raised concerns about rural housing targets in Westminster Hall. A government minister responded.

Key points

  • The new housing formula for rural England will double the target numbers for some areas, increasing from 575 to 1,142 units in East Hampshire.
  • The government aims to build 1.5 million new homes and implement reforms to address the acute housing crisis in England.
  • The revised standard method for assessing housing needs aims to better respond to affordability pressures through a higher adjustment in its calculation.

Key requests to Government

The Government should reconsider the formula to ensure it does not lead to an excessive focus on rural development at the expense of cities and their significant contribution to economic growth.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Damian Hinds Con East Hampshire

The new housing formula for rural England is set to double the target numbers for some areas, increasing from 575 to 1,142 units in East Hampshire. The concern arises over urban-rural divide and the potential negative impact on economic growth and decarbonisation efforts.

Other contributors (14)
  • Andrew George LD St Ives

    The hon. Gentleman pointed out the importance of rural exception schemes in achieving housing outcomes and keeping development land prices down. Planning should be about meeting need, not greed. The Prime Minister's policy of backing builders over blockers is putting greed before need. Setting house building targets has failed because it does not address local housing needs and leads to wrong type of developments. Explained difficulties in delivering on rural exception sites due to viability thresholds being hard for housing associations to meet, and suggested controlling second homes and building an intermediate market of affordable homes. There should be strengthened local authorities’ ability to use rural exception policy for affordable homes in green locations, suggesting paying 10 times agricultural value rather than 100 times for land prices.

  • Charlotte Cane LD Ely and East Cambridgeshire

    Discussed the increase in rural homelessness, poor quality existing housing, lack of infrastructure, and proposed measures such as community-led development and holding developers accountable.

  • Damian Hinds Con East Hampshire

    We need more housing everywhere and a shift to the sorts of homes that allow first-time buyers and young families to get on the housing ladder. The targets need to be realistic given material and workforce availability, accompanied by critical infrastructure.

  • Greg Smith Con Mid Buckinghamshire

    The differential between what rural communities are being asked to build and towns/cities does not reflect fairness, as the Labour party often used to define itself. The disparity impacts Solihull's housing construction requirements compared to Birmingham’s reduction. Buckinghamshire has already built tens of thousands of new homes since the start of the century, with more controversial proposals on agricultural land. Villages are fed up with losing farmland and their rural identity due to development.

  • Jamie Stone LD Caithness, Sutherland and Easter Ross

    Described housing challenges in remote areas of Scotland, including a headteacher's daily commute due to lack of local accommodation. Emphasised the importance of affordable housing for young people and community development.

  • Jim Shannon DUP Strangford

    The constituency of Strangford faces real challenges with housing provision, including social housing cases where people need rehousing but the stock is not available. The Housing Executive in Northern Ireland invested approximately £204.13 million in rural communities and built 425 new social homes.

  • Joe Morris Lab Hexham

    The MP highlighted the issue of young people being forced to leave their communities due to a lack of affordable housing and raised concerns about school closures and infrastructure needs in rural areas.

  • Matthew Pennycook Lab Great Grimsby

    Local planning authorities can argue for lower housing requirements based on constraints, but the guidance is not clear. The Government believes all areas must contribute to solving the housing crisis and direct growth towards urban areas.

  • Holden Con Rochdale

    Asked about urban densification schemes and cited an example in Finsbury Park, which transforms a post-war estate into more homes, suggesting that similar approaches could mitigate pressures on green-belt areas.

  • Richard Holden Con Basildon and Billericay

    Highlighted concerns about large developments in his constituency leading to pressures on local services, such as schools, and the worry that section 106 money might not be sufficient for these needs.

  • Paul Holmes Lab Lincoln

    The hon. Member for Lincoln pointed out that Labour councils in urban centres are having their targets cut, whereas the Government's algorithm is making it easier to build houses in rural areas where infrastructure delivery is harder.

  • Peter Prinsley Lab Bury St Edmunds and Stowmarket

    Highlighted the need for changes in rural exception regulations to build affordable housing that retains village character. Suggested adaptations for older residents, citing examples from Japan.

  • Richard Foord LD Honiton and Sidmouth

    Asked why only a few local planning authorities have built houses using the rural exception sites policy. Asked the hon. Gentleman if he considers his local Liberal Democrat council successful despite its debt.

  • Saqib Bhatti Con Meriden and Solihull East

    Discussed starter homes as a solution for young families in rural areas, questioning the current funding formula's impact on rural housing development compared to urban areas.

Government Response

Matthew Pennycook

The Minister for Housing and Planning

The Minister stated that England faces an acute housing crisis blighting lives and hampering economic growth. He committed to building 1.5 million new homes, implementing reforms like the national planning policy framework to reverse anti-supply changes, and restoring mandatory housing targets. The revised standard method for assessing housing needs aligns with ambitions for 1.5 million homes, better responding to affordability pressures through a higher adjustment in its calculation. Local planning authorities can and do prepare local plans with lower housing requirements based on evidence. The Government directs growth to urban areas, not reducing the number of houses in cities as some claim. Green belt policy remains important but a strategic approach is taken for release where necessary, ensuring affordable housing and infrastructure improvements.

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