Reaction to Rural Productivity Plan

Use of land for Starter Homes queried by RICS.

The Royal Institution of Chartered Surveyors (RICS) has welcomed the government’s first ever Rural Productivity Plan which was announced yesterday but also warned on the issues of using the land set out for Starter Homes.

In a ten-part plan, the Rural Productivity Plan is set out to ensure that in future, there won’t be a reliance on city-based businesses for parts of the country that contribute a combined 16% of England’s total output, which displays how vital to the economy the rural area is.

Part of the plan, the government is making plans for villages to establish neighbourhood plans and allocate land for new homes, including the use of rural exception sites to deliver Starter Homes.

The thinking behind this is there will be more Starter Homes sites for those wishing to live in the area.

However, Jeremy Blackburn, Head of Policy for RICS, believes that the arrival of Starter Homes will be detrimental for housing needed for the older generation.

He said: “We welcome the government’s acknowledgement that rural areas, not just cities, can contribute to the recovery.

“However, the ten-point plan is a hand up and not a hand out, particularly cutting on-farm inspections and improving telecoms.

“One of the biggest issues that rural communities and businesses are struggling with is affordable housing for younger workers. Increased apprenticeship numbers will grow the workforce but forcing Starter Homes on rural exception sites is removing the homes they will need later in life.

“Starter Homes are offered at a 20% discount on market rate and these sites are, after all, specifically designated for affordable housing and often built by housing associations.”

Under the Rural Productivity Plan, transport connections will be created through the £15Bn Road Investment Strategy and the £38Bn rail investment programme.

And Jeremy Blackburn added: “Much still relies on the rural proofing of other departments, like road and rail spending, and the ability of cash strapped local authorities to fund 100% business rate discounts.”

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