Greg Hurst, Political Correspondent
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Thousands of low-cost homes for local people are being planned in what would be the biggest building programme in the countryside for a generation.
The new homes are proposed as part of a review ordered by Gordon Brown. Under the scheme, dozens of market towns would have communities built next to them large enough to sustain their own shops, pubs and even schools. Planning rules would be also be changed to remove restrictions and allow residences for lower-income families to be built.
The proposals are an attempt to boost affordable homes in rural areas and find sites for Mr Brown’s target of three million extra homes by 2020.
The houses would enable teachers, farm workers or craftsmen living or working in villages, who have been unable to get on the property ladder after years of rising house prices, to own a home for the first time.
But they are likely to meet opposition from some countryside campaigners and could divide communities by weakening the hand of those opposing development in “gentrified” villages where house prices are beyond the reach of many local families.
The plans, set out in a briefing note seen by The Times, are being circulated as part of a review ordered by Mr Brown into affordable housing, which is being undertaken by Matthew Taylor, the Liberal Democrat MP for Truro and St Austell.
Although he is still consulting on the proposals, Mr Taylor is believed to have kept ministers informed of his thinking and to have won their backing to develop them in further detail.
In smaller villages, where local incomes tend to be lower and property prices higher than in towns, he suggests changing planning rules to allow more new homes to be reserved for people on limited incomes who live or work in the community.
His key proposal is to give powers to England’s 8,000 parish councils to identify sites for homes where demand for affordable housing is so high that they justify “exceptional” planning approval.
This procedure – under section 106 of the Town and Country Planning Act 1990 – can currently be used only by local authorities and is more commonly used to force developers to include social housing in bigger plots. It is seen as ineffective in small villages, where as few as 1,500 affordable houses are built a year under the process.
Because permission to build in such villages would normally be refused under planning restrictions, Mr Taylor suggests that sites could be bought for about £100,000 an acre, a fraction of the full market value of land for housing development. Homes built under the process, typically in plots of between four and a dozen, must be for local workers and must be sold at a price set by affordability criteria – such as three times joint average local earnings for couples – which he estimates would mean a three-bedroom house for £120,000 in many areas.
Deeds would specify that buyers of such homes could sell them only under similar conditions, with no right for owners to buy out their nonmarket status, which stripped many rural areas of their stock of council houses.
Another report on rural housing commissioned by Mr Brown two years ago, which was produced by a committee chaired by Elinor Goodman, the former television journalist, said 11,000 homes needed to be built every year in small villages to keep up with demand.
Mr Taylor also advocates a radical change to larger housing development near market towns, saying planners should design whole new communities beside existing settlements as an alternative to urban sprawl.
He calls for an end to “doughnut” housing in which developers add housing estates piecemeal to the edges of market towns, which he says often lack facilities and a sense of community.
Instead he proposes “eco-extensions” with shops and cafés of their own, linked to existing towns by public transport and cycleways and footpaths but with parks, woodland or small nature reserves added between them to enhance both communities.
The idea is modelled on Poundbury, the neo-Georgian extension beside Dorchester, Dorset, inspired by the Prince of Wales and designed to his traditionalist tastes.
It also echoes Mr Brown’s own plans for ten new “eco-towns”, built with the lowest possible environmental impact, for which the Government is preparing to announce its list of chosen sites, although these are separate settlements not linked to existing towns.
Signs are emerging, however, that so-called eco-housing can be just as unpopular with nearby residents as any other development and proposals for eco-towns have provoked a rash of opposition campaigns, including one involving Tim Henman, the tennis player, near his parents’ home in Oxfordshire.
Country life
11,000 the new homes needed each year in villages to meet demand
6% higher house prices in rural areas than towns
£17,400 average earnings in rural areas, compared with £22,300 in big urban areas
8.5 times average earnings needed to buy home in rural England
3,166 affordable rural homes a year funded by taxpayer
Source: Affordable rural housing commission 2006
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I agree with Stuart. Mr Brown's affordable housing programme is building the council estates of the futur. Poorly built, small with no outdoor space.
We are not lacking affordable houses. We are lacking affordable quality family homes. We need to build homes in the £350,000-400,000 bracket. Build enough og them and the price will come down.
You cant charge people half price for a house if they live in this village and do that job. Apart from being completly unfair it will end up like the education post code lottery. It would then be woth my while giving up my finance job to become a carpenter in bognor village so i can get my bargain house!!
Nothing this government comes up with surprises me anymore
John Heenan, bath, uk
They are sure to be located near to Milton Keynes!!!!!! City status will be assured then.
john, milton keynes,
If the popular term 'eco towns' is the catch phrase for creating an urban sprawl it only goes to show that the government are overlooking the needs of those who care about our environment. Next thing you know they'll carve up the landscape yet again by building more roads stating that it's benefitting the local economy or something just as superficial as that.
Marie-Claire Oliver, Bath, United Kingdom
Another failure, the millions of immigrants who have arrived here now need housing. Free homes, free schools, free healthcare, free social security. 3 million homes is not enough to sustain the migrant population. The UKâs population is projected to rise by 7.2 million from 2004 to 2031 and 6.0 million (83%) of this rise is due to immigration.
So who are these houses for?
steve tea, manchester, cheshire
Building cheaper houses in areas without real jobs is nothing else but one more PR campaign. They will transfer overcrowding to smaller villages so nobody will see them and 'problem does not exist'.
How will it look if a village of 3000 gets 1000 inhabitants more? Nobody will be happy.
Soon, new owners will lose jobs or interest to travel to work, so they will go on benefits, etc, etc, etc.
This looks like one more scheme where government will again waste a lot of taxpayers money and private sector (remember Abrahams) will profit most.
Savo, London, UK
Yet another spin ' proposal ' from Brown on so called 'low cost housing' . The new spin doctors appear to want to make vague annoucements on any subject to bolster Brown . The absolute lack of any numbers & budgets make any claim spurious. What is low cost housing, even Prescott's figures didn't add up. The costs were still unaffordable. Where is the budget for this? The story does not add up. Remember how Labour keeps saying Tory plans don't add up. Well without any numbers supporting this article , the story is just Labour hot air & spin. Is this the best Brown's new spin doctors can do?
Clive Kitchener, Pulborough, UK
Ahh, taxpayers paying to subsidise a cheap local workforce for the the wealthy - and who said socialism was dead?
Henry, Leeds, UK
Every single government initiative is a disaster waiting to happen. What will be different about this one? Nothing!
Incompetent planners will forget that a community will need access links in the form of new roads, new schools, new hospitals, water treatment facilities, power supplies, etc... It's not just a case of building a few houses - or in Brown's case a few hundred thousand new houses. If Labour have not succeeded in changing the fabric of society in their ten year social experiment, then uncontrolled housing plans surely will.
The law of supply and demand will dictate that existing houses will lose value. Large swathes of hard working, ambitious people will find themselves in negative equity situations. with absolutely no hope of salvation!
Tinkering with the natural order of things, is like messing with mother-nature. It will bit you back in the end, only much harder than you could ever imagine!
peterj, aberdeen, uk
Thank God that crashing houseprices will make this latest plan to concrete over every blade of grass completely redundant.
Brown and crew can't seem to get anything right. Idiots.
Ian, London,
Corrugated galvanized steel maybe had you not squandered the inherited wealth from the previous sleaze government.
wayne, huntingdon, cambridgeshire
houses for farm workers and craftsmen - do we have any left? All this is going to do is bring council estates to the countryside, destroy the greenbelt etc etc. This will be yet another Labour failure that we will have to endure on top of all the ill conceived failures once they are voted out.
stuart, london, uk
What cannot this government understand that they have preached everything about the cities and nothing about the rural life in this country. They have gone against everyone who lives in the rural areas by shutting post offices, vital village schools that "do not meet the needs" on vague educational ideas, restritcing planning , and placing restrictions on health and safety grounds on the use of village halls and worst of all virtually eliminated the village policeman.In fact anything which has the possibility of being a class issue. By chuking money at yet another" clear blue sky project" they forget that people in the country are just fed up with grandiose rhetoric that produces no jobs in the country but satisfies another ego trip , employing another army of beurocrats
Philip Hodges, Nottingham, Uk
What about single occupancy? Single people get no tax perks at all and seemingly no help with housing either!!!!!
Nan, Reading, UK
There is no point in housing low income families in villages just because they grew up there. There have to be real jobs otherwise we increase commuter villages and then have to provide them with cars to get to work.
If our policemen, teachers ets: are so badly paid that they have to be subsidised then the pay should go up to make the true costs transparent. Perhaps if the unions were more flexible regional variations could be used to enable people to work near their homes.
Rightly or wrongly, globalisation means the less skilled can only be rewarded at global rates for the job in the same way as highly skilled individuals expect to receive global rewards.
Throughout the world people gravitate to towns where there are jobs and are large enough to provide the amenities expected today. Most farming can be worked by a few skilled technicians.
William, London, England
Another review commissioned by Brown... following Elinor Goodman's report on rural housing two years ago. And what happened to the recommendations she made?
What makes anyone think that this latest review will result in anything other than the commissioning of yet another one by the man famous for the vast number of reviews he has ordered in the last eight months since he became Prime Minister?
This is a man noted for rhetoric, not action. And no, I haven't forgotten that he granted the Bank of England independence, but that was quite a while ago.
Vivien Aldred, Norwich, UK
Have a look at the Rowner Destruction website - we HAVE affordable housing here in Gosport, but THEY are trying to take it away. Perhaps Mr Brown should listen to the people here. Yes, we would settle for decent replacement homes, but NOT made out of ticky-tacky. A lot of things are possible, but not if you put developers first. Self-build? Not even given a chance.
Bryan Lawrence, Gosport, Hampshire UK
If Brown didn't let hundreds of thousands of immigrants to swamp our country every year, we wouldn't have such a housing crisis. It is also not helped by the government's flawed policy of demolishing old houses in the north of England, reducing the housing stock.
Brown (and all governments) should stop medalling with the market. If housing is too expensive in the south, that will force people to move north where housing is cheaper. If companies find themselves unable to recruit staff as a result, they will move to where the cheap labour is. Thus the country's wealth would be redistributed across the country rather than concentrated in London and the south east because of flawed government policy.
HC, London,
Might be OK as long as the exteriors don't look out of place - like about 99% of new houses do now !
Remember the song ? "Little boxes made of ticky tacky and they all look just the same".
Stan(expat), USA, USA