New rules will increase number of rural barn conversions

The government is planning to introduce new permitted development rights for agricultural buildings in England.

Farmers and estate owners will be able to convert buildings under 150 sq metres into a residential dwelling without the need to gain full planning consent.

A maximum of three additional dwellings, including flats, will be allowed on an agricultural unit.

Buildings up to 500 sq metres can be used for a state-funded school or nursery providing childcare.

The move proposed follows earlier changes that came into effect in May allowing farm buildings to be converted to a range of commercial uses without the need to gain planning permission.

A  consultation on the proposals closes on 15 October 2013.

Prior approval will be needed from local authorities before any residential conversions can take place and the new rules only apply to agricultural buildings constructed before 20 March 2013.

The areas that will require approval include:

• Siting and design to ensure physical development complies with local plan policies on design, materials and outlook

• Transport and noise impact, contamination and flooding risks to ensure that change of use takes place only in sustainable locations

James Del Mar, Head of Knight Frank’s Rural Consultancy Team, says the proposals could be positive for rural landowners.

“Anything that allows the more flexible use of farm buildings that no longer fit into modern farming systems is to be welcomed.”

However, he says those planning any conversions will still need to work closely with their local authorities.

“Although they will not have to make a full planning application, there are still a number of considerations that will have to be satisfied before conversions can take place.”

Younger people priced out of rural England

People in their thirties are moving out of the countryside in a stark demographic shift as house prices nearly double in rural areas, despite incomes rising more slowly than in urban areas.

New figures from the National Housing Federation show the number of people aged 30-44 has dropped nearly 9% in rural areas over the last decade, despite numbers rising in urban areas.¹

The analysis also shows:

• The number of children under 10 in rural areas has also fallen 2%, although numbers have risen 6% elsewhere. ¹
• Overall, there are 2% fewer under-45s in rural areas but 6% more under-45s in urban areas.¹
• The number of over-65s in rural areas has risen 2.5 times faster than in towns and cities (20% rise in rural areas compared to 8% rise in towns and cities). ¹

Alongside this demographic shift, rural house prices have soared in rural communities. In rural areas, house prices nearly doubled² in ten years, up 82% from £126,016 to £228,742. However, wages have not kept pace, rising 17% slower in rural areas than in urban areas over the last five years.³

Of the ten rural areas across England with the biggest rise in house prices, only three have seen an increase under 45s over the last ten years:

Local authority	House prices			Under 45s
	2001	2011	% rise	% rise
Copeland	£53,095	£129,862	145%	-9%
Richmondshire	£94,070	£214,248	128%	3%
North East Derbyshire	£77,257	£167,940	117%	-7%
West Lindsey	£73,596	£159,646	117%	1%
Eden	£94,011	£201,968	115%	-6%
Cornwall	£102,636	£220,083	114%	1%
East Riding of Yorkshire	£77,160	£163,502	112%	-4%
Allerdale	£74,573	£157,335	111%	-6%
Ribble Valley	£106,423	£223,195	110%	-4%
Ryedale	£107,169	£223,080	108%	-9%

Of the ten rural areas with the biggest fall in under 45s, all but one (North Warwickshire, highlighted in green) saw above-average rises in house prices:

Local authority	Under 45s	House prices
	% fall	2001	2011	% increase
South Hams	-11%	£144,309	£295,940	105%
West Somerset	-11%	£122,347	£232,143	90%
South Lakeland	-10%	£116,273	£224,506	93%
Derbyshire Dales	-10%	£126,068	£237,277	88%
Maldon	-10%	£134,759	£251,593	87%
Copeland	-9%	£53,095	£129,862	145%
North Warwickshire	-9%	£91,554	£163,036	78%
Ryedale	-9%	£107,169	£223,080	108%
Craven	-8%	£100,161	£202,688	102%
High Peak	-8%	£91,702	£176,053	92%
Rural average	-2%	£126,016	£228,742	82%

Gill Payne, Director of Campaigns and Neighbourhoods at the National Housing Federation, says:

“Young people are being priced out of rural England by rising housing costs and are moving elsewhere to raise their families.

“What will happen to the local shops and pubs, the village school, the small businesses that maintain rural economies, if there’s no-one left to keep them open?

“If we don’t start building more homes that ordinary families can afford, our treasured rural England will become the preserve of the old and wealthy.

“It’s up to all of us to halt this rural decline. Tell your local councillor to say yes to village life and yes to homes.”

The National Housing Federation is joining with housing associations around the country to celebrate Rural Housing Week, which runs from 10-16 June and campaigns for the right homes at the right prices in rural communities.

To take part in the campaign and say yes to homes in your community, visit www.yestohomes.co.uk.