Credit crunch cloud has a silver lining, says rural housing provider
02/01/2009
The area, one of the most scenic in Britain, has failed to escape the effects of the credit crunch. For example, the number of repossessions in the location has risen from two in 2005 to 18 in 2008.
Workers who live in the area have also felt the pinch, according to a recent report by the Commission for Rural Communities.
‘Economic inactivity’ levels have increased by 40,000 in rural areas compared to 3,000 in urban areas during the 12 month period ending in September 2008.
The impact has been felt too by those housing providers which offer shared ownership or ‘part buy, part rent’ properties.
Among these is Peak District Rural Housing Association (PDRHA), based in Cromford, Derbyshire.
Area manager Alison Clamp said the economic climate meant there was a low take up of shared ownership homes as there are not the mortgages available to enable people to buy even a proportion of their house.
Housing providers apply for grants from the Homes and Communities Agency, formerly the Housing Corporation, to cover the building cost. Rental homes need a larger grant than shared ownership homes so having less of the latter pushes the average grant rate up.
Alison said: “We and others are growing increasingly cautious about including shared ownership homes in developments because people simply cannot afford to buy, whether in full or part.
“The downside of this is the average grant we are requesting from the Homes and Communities Agency is higher but the silver lining is that the agency actively wants to support rural housing developments and, in turn, its communities.
“From this point of view, I believe it is a promising time to bid for grant funding in order to provide people in rural areas with affordable homes.”
Ends.
Notes to editors:
PDRHA is based in Cromford, Derbyshire, and manages more than 200 homes for rent or shared ownership, including 63 across Derbyshire Dales and others in Staffordshire Moorlands and South Derbyshire.
Statistics taken from the Commission for Rural Communities report entitled, ‘Recession impacts on the economies and communities of Rural England’.
For more information about this release contact Lyndsey Hunt, of Word Association, on lyndsey@wordassociation.co.uk or call 01455 614333.