Government 'considering rural house price capping'

Government 'considering rural house price capping'

The government is reported to be considering a policy of capping prices of some homes in the countryside to ensure they remain affordable to local residents.

The Daily Telegraph says a group considering the future of rural areas, overseen by the Cabinet Secretary Sir Jeremy Heywood, is looking at capping as a result of prices being pushed up by people buying second homes while local wages remain relatively low.

In a discussion document put to the group, it ic claimed that the lack of affordable housing in the countryside will continue to be a "prominent issue" in future.

The newspaper says the document states: "Ideas of what a future rural scenario could look like were discussed, including the idea for mandating ‘affordability’ of property in perpetuity to ensure the property doesn’t get sold on for a higher price and therefore adding to the pressure of providing more affordable housing.

"Attendees debated the viability of rural communities if this pressure was to continue, especially if the rural population grows older and wealthier. It was concluded that the provision of flexible, affordable housing in rural areas would continue to be a prominent issue in the future."

Here is the Telegraph article.

Earlier this year the National Housing Federation described swathes of rural England being prone to becoming ''pensioner pockets'' as young families find themselves priced out of the areas they grew up in. 

West Somerset had the highest projected proportion of pensioner households by 2021, with 47 per cent of households there expected to be headed by someone aged over 65. 

The Telegraph reports that North Norfolk, East and West Devon, East and West Dorset, the New Forest, South Lakeland, the Malvern Hills, Ryedale, the Derbyshire Dales and the Cotswold district also had high volumes of pensioner owners.

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