RDC(3) P&D17

Rural Development Sub-Committee

Inquiry into Poverty and Deprivation in Rural Wales

Response from the Farmers’ Union Wales

Clerk of the Committee
Rural Development Sub-Committee
National Assembly for Wales
Cardiff Bay
Cardiff
CF99 1NA

Dear Sir/Madam

National Assembly’s Rural Development Sub Committee Inquiry into Poverty and Deprivation In Rural Wales

Thank you for inviting the Union’s contribution to the Sub Committees Inquiry into Poverty and Rural Deprivation in Rural Wales.  Following an internal consultation with its membership, the Union submits the following comments on the questions raised in the document.

General

1. What are the poverty/deprivation problems faced by rural areas? What are the specific needs of rural areas in relation to this issue?

The FUW believes that many of the poverty/deprivation problems faced by rural areas stem from higher costs for housing, maintenance, and fuel prices for domestic travel and heating, coupled with lower than average wages, higher competition for available employment, and the costs of travelling to work.

Members also commented that Council Tax rates tend to be disproportionately higher in rural areas, despite those living there often having fewer amenities and services than their urban counterparts.

Social deprivation can be attributed to the lack of basic facilities in many rural villages.  The closure of schools, post offices and public houses has increased the level of remoteness and isolation for many groups such as young mothers, the elderly, and indeed children, as there is often a need for parents to drive their children a considerable distance to enable them to attend out-of- school activities.

For many rural communities, the possession of a car is a necessity and not a luxury, as public transport is generally sporadic and, as local facilities disappear, families have to travel further to reach the shops, Post Offices, etc.

Agriculture remains the bedrock of the local economy in terms of the multiplier effects of farm incomes on the local economy. Over recent years, farm incomes have been low, and this has had a profound effect on the viability of farms as well as on the businesses, feed merchants, livestock markets, etc, which rely on them.

A sustainable and vibrant rural economy is reliant upon the agricultural industry, which provides employment, both on-farm as labour or contractors, and wider employment opportunities from diversified activities.

Housing poverty is a significant problem in rural areas, particularly within National Parks and the M4 corridor where the demand for housing by more affluent incomers and the restrictions on planning mean that the lack of affordable housing has made a huge contribution to the general causes of rural deprivation in Wales.

The Union recently contributed to the Joseph Rowntree Commission’s consultation on rural housing, and a copy of the evidence submitted to that group is attached to this response for the Sub Committee’s information.

The FUW believes there is an undeniable housing shortage in rural areas which requires novel solutions and partnership action to ensure that any new 'affordable’ housing stock remains available in perpetuity.

2. Are anti poverty/deprivation activities best dealt with by the Welsh Assembly or by Local Authorities? Why?

The Union believes that the National Assembly needs to take a lead in pump priming anti-poverty/deprivation activities to ensure that there is a concerted, partnership, approach to dealing with these, often complex, issues.

The Union is also concerned that if the Assembly expects Local Authorities to take a lead on the issue, there will be inevitable funding requirements on Local Authorities, which are likely to result in increased Council Taxes, thus defeating the object of any new activities.

The FUW believes that Local Authorities are best placed to identify the particular problems of their local communities, but there is a need for the Assembly to take a lead on the development of partnership working and pump priming any activities identified.

3 (i) What anti-poverty/deprivation initiatives (Welsh Assembly Government or Local Authority) are you aware of?

In response to this question, members cited bus passes, prescription charges, and fuel rebates. The importance of free school milk and the 'breakfast club’ initiative run by some schools were also mentioned. This clearly demonstrates that there may be a wealth of anti-poverty initiatives available, but knowledge of and information about such programmes are hard to come by.

The Union is aware of some of the programmes available under European structural funds and Rural Development Plan initiatives which have had some success in engaging local communities and thus improving local infrastructure and the provision of some commendable local projects.

3 (ii)  Do these anti-poverty/deprivation policies adequately address the needs of rural areas?

Given the responses received to question 3 (i) above, the Union would suggest that there is a need for greater publicity to be given to the measures available and a need to engage communities on how to access these measures.

4. What specific measures would you like to see implemented by the Welsh Assembly Government to deal with poverty/deprivation issues in Wales?

The FUW believes that many of the most needy people within rural communities are the least likely to actively seek help and assistance from the state. The Union is aware, for example, that due to the Foot and Mouth outbreak in England last year, demands on charities such as the Royal Agricultural Benevolent Institute have been huge, as many farmers faced extreme financial problems through no fault of their own.

Isolation, both in terms of rurality and the lack of a transport infrastructure, can magnify these problems, and the Union believes that there is no easy fix which would solve these problems over the short term. However, members have suggested that road fund tax concessions, fuel vouchers, or a tax rebate for the self-employed, could help overcome the lack of public transport infrastructure in many rural areas.

Coupled with this, the promotion of car sharing, a review of Hospital Car services, and the provision of Post buses, would help some of the most vulnerable people in rural communities.

Members also advocated more help for mothers wishing to return to work as many of the lower paid jobs in rural areas barely cover the cost of childcare, despite tax concessions.

The FUW is concerned that many local services are disappearing and urges the National Assembly to look carefully at a pilot project in England where the Local Authority is taking over many local Post Offices linked to closure.  The Union believes that this could be a potential way forward for many rural Post Offices.

The FUW also believes that there is a need for the promotion of community partnerships and co-operation.  There have been examples of community engagement resulting in the re-opening of basic facilities within communities. The Union believes that more could be done by the Welsh Assembly Government to encourage local communities to identify their own needs and priorities with accessible help and guidance to access funding and mentoring.

The Union welcomes the Sub Committee’s decision to hold an Inquiry into rural poverty and social deprivation in rural areas and trusts that the preceding comments will be of some value to its deliberations.

Yours faithfully

Rhian Nowell-Phillips
Senior Policy Officer
Llys Amaeth, Plas Gogerddan, Aberystwyth, Ceredigion, SY23 3BT
Tel: 01970 820820 Fax: 01970 820821

Enc:The Farmers’ Union Of Wales’ Evidence to the Commission on Rural Housing In Wales

Information about your organisation/business

1.The Farmers’ Union of Wales is an independent body, which was established over 50 years ago to represent the interests and needs of farmers and growers in Wales at all levels of Government in Wales, at Westminster, and in Europe.  Farming is the cornerstone of the rural community, and agricultural income, through its multiplier effect, maintains the incomes of other businesses and services in rural Wales.

The Farmers’ Union of Wales welcomes the Commission’s decision to look at Rural Housing in Wales, as there is ongoing concern amongst members on how to maintain the vibrancy of rural communities.

The nature of housing needs in rural areas

2. What do you consider to be the main components of housing needs in rural areas?

Agriculture and the wider rural economy are dependent on young, highly skilled technicians entering the industry, bringing new ideas and energy to enable farming to maintain and enhance the development of technological expertise so as to improve market realisations and ensure stability within the sector.

Historically, rural workers’ incomes are lower than those of their urban counterparts, and the recent trend of outmigration from urban areas has placed increased pressures on the rural housing market that has driven house prices up beyond the means of many rural dwellers.

Housing needs can be divided into two main categories: agricultural housing for family members where there is a need for the dwelling to be situated close to the main holding/livestock housing, and the wider rural housing needs of young people who work within the rural area, generally on low to moderate incomes, who need affordable housing to remain close to their place of work.

3. Are there certain groups of people who are more likely to experience these housing needs than others?

The Union believes that it is young families which tend to experience these housing needs, although farmers who retire in rural areas and whose assets remain tied up in the farmstead may experience similar problems due to inflexibilities in the planning system.

Additionally:

• Children who have succeeded in obtaining local employment and who wish to remain in the area.

• Those who have finished further education, but who now wish to return and contribute to the development of their community.

• Tenant farmers on their retirement from farming.

• Escapees from the 'rat race’.

• Retirees looking for a better environment in which to enjoy their free time.

4. Would you say that these needs impact more or less evenly across rural areas, or are there particular geographical areas that have been affected more significantly than others?  (If particular areas, please provide details of types of area.)

Whilst recognising that the issue of affordable housing is not restricted to rural areas, deeply rural communities are generally situated within beautiful countryside which, inevitably, increases the demand for housing as people look to retire or settle in these areas.

It could be argued that National Parks have specific impact problems due to the beauty of the surroundings coupled with restraints on development which have exacerbated the upward trend in house prices.  This is particularly acute in rural areas which are within commuting distances of major conurbations i.e. along the M4 corridor or the A470, or in popular 'holiday' destination areas, where more affluent incomers have purchased holiday or retirement homes.

5 What do you see as the main causes of housing needs in rural areas?

The Farmers’ Union of Wales believes that the main causes of housing needs in rural areas are:

• The increasing numbers of affluent incomers seeking to retire in the countryside. These incomers can compete more effectively for houses than can local people who are generally on lower incomes.

• The housing supply within rural areas and the perception at least that local planning authorities are becoming less likely to allow housing developments within rural areas due to the plethora of environmental and conservation designations, both statutory and nonstatutory, which are effectively stagnating development in some rural communities.

• The emergence of 'commuter communities’ which provide little or no economic benefit to rural areas.

6. How do you feel that rural housing needs compare with those found in urban areas in Wales?

As outlined above, the problems associated with affordable housing are not confined to rural areas.

As house prices continue to increase, and the market continues to reflect an increase in buytolet or buy-to-leave investments coupled with a trend to seek larger houses than in the past, the availability of housing stock in many areas cannot meet demand.

By their very nature, rural areas tend to have less variety in the types of housing stock available than urban areas and this drives up the prices of all house prices, as location becomes more of a selling point than house type.

Rural areas tend to suffer a number of additional disadvantages such as limited employment opportunities, poor public transport infrastructure, and a lack of local services, which inevitably has an effect on traveltowork distances and the ability to live and work in the same area.

7. How have the nature and scale of rural housing needs changed over the last 10 years?

Whilst the Union has been expressing its concerns about restrictive planning regulations and the lack of affordable housing for the past ten years, the recent property boom, coupled with an increasing trend for people to seek housing in rural areas, has become exacerbated over time, thus increasing the trend of outmigration of young people from the rural heartlands.

Similarly, the past ten years have seen downward pressures on farm incomes, and successive Governments have encouraged farming businesses to diversify away from conventional farming systems.  Whilst diversification has produced employment opportunities, the current planning regulations, which require farm-based housing to meet tests for agricultural viability, have made it harder for farmers to obtain planning permission for dwellings on the farmstead.  Conversely, planning for holiday conversions is not bound by these conditions but the resulting accommodation is restricted to holiday or seasonal lets, which does little to ease local housing accommodation needs.

8. Do you have evidence that housing problems in rural Wales affect the Welsh language and culture?

During the Union’s internal consultation with members, concern has been expressed that the lack of affordable housing in rural areas is having a detrimental effect on the language and culture of Wales, as Welshspeaking families are forced to move out of the area to be replaced by older residents.

This outward migration of young families impacts on the viability of community facilities such as schools, village halls and local services such as Post Offices and small shops.

Members have also noted that in areas where there has been a rapid increase in the number of incomers, there is a purported tendency for them to develop their own social and community activities and this results in  'silos’ developing within communities which fragments once close knit areas which has an inevitable knock on effect on the language and culture.

9 To what extent are rural housing needs recognized by the Welsh Assembly Government?

The Union has contributed to a number of consultations, inquiries and studies on planning guidance, housing availability, and other relevant work, emanating from the Welsh Assembly Government over recent years.

Whilst many studies recognise the problems of and the need for affordable housing and make recommendations to the Assembly, there is wideranging debate on how effective planning tools can be in creating affordable housing which remains available to low income families over the medium to longer term

Whilst the Union believes that the Welsh Assembly Government does recognise housing needs within rural areas, members believe that reaction has been slow to instigate real change.

A number of Local Authorities have taken a proactive role in adapting local policies to address these issues, but there is a need for the Welsh Assembly Government to take a more decisive lead in promoting good practice and disseminating advice and guidance.

On the issue of agricultural dwellings, whilst there has been general recognition that the agricultural industry has had to adapt and change in the light of Government policy and market conditions, there has been little or no reflection in planning policy to reflect these changes.

As farms diversify their incomes, more of the income may be generated outside conventional agricultural enterprises, although the need for close supervision of livestock, particularly when housed, remains a core requirement. These changes within agriculture need to be reflected in the planning regulations, so that planning restrictions and viability tests on agricultural holdings are based on the concept of wider business needs.

10. What information or data exist as evidence of the types of rural housing needs that you have mentioned?

Most of the evidence received from members is anecdotal, although it is clear that the planning restrictions on agricultural dwellings have had an impact over recent years.

The Union is aware that Local Authorities and other agencies collect relevant data on housing needs etc.  However, gathering factual information specifically on the needs raised previously would prove difficult, as many of the people who have to leave an area due to the lack of affordable housing may never appear 'on the radar’ in terms of gathering statistical evidence.

11. What would you say are the main obstacles to identifying rural housing needs?

Housing needs, as with any other issue, are difficult to quantify as a number of factors determine why there is inward or outward migration.  In some areas, lack of employment or lack of basic facilities may force young people from an area, whilst retirees may not see this as a major issue.As outlined above, much of the evidence received as part of our internal consultation is anecdotal and is therefore difficult to justify with concrete evidence.

Figures available on housing waiting lists will give some indication of housing need, but do not reflect those who are living with relatives, have already moved away from an area, or are commuting great distances.

Similarly, the rate of homelessness in rural areas is said to be rising, although collating these statistics is understandably difficult.  

12. What further actions are required to provide a better assessment of the nature and scale of rural housing needs?

The Union does not have the technical expertise to respond adequately to this question.

13. Has your organisation/business undertaken any surveys or other research on housing needs in rural areas?  (If yes, please provide details.)

No

Responding to rural housing needs

14.What actions have been taken by your business/business to tackle or raise the profile of housing needs in rural areas?

The Union has long campaigned on the problems associated with rural housing -  for agricultural workers and their families - and on the need to retain young people within the wider rural economy.

The Union has responded to many consultations/reviews and inquiries on the issue, and has consistently highlighted in the press the problems associated with rural housing and indeed the needs of the wider rural economy.

On a local basis, many of our County branches have worked with local authorities to highlight the problems.

15 How successful do you feel that these actions have been in responding to rural housing needs?

The Union accepts that the problem of affordable housing in rural areas is not going to be an easy issue to address over the short term.

The FUW has, however, welcomed a number of initiatives which have been taken to address the issues, including pilot projects and the work of individual Local Authorities in taking novel approaches to housing policy

The recent media publicity surrounding the creation of 'holiday let’ villages and the plight of local people who can only get accommodation on a seasonal basis, has also helped improve awareness among policy makers of the need for concerted action.

16. What actions are you aware of that have been initiated by other groups or organizations to deal with housing needs in rural areas?

The Union is aware of a number of studies and initiatives which have been embarked upon by a range of groups and organisations in Wales, including the Welsh Assembly Government, Defra, the Wales Rural Observatory, and local authorities. The Assembly Government has implemented and funded initiatives which are helping the supply of housing, both in the private and social housing areas. One scheme which is beginning to make headway is the Rural Housing Enablers (RHE) scheme. There are currently four 'Enablers' operational in Wales, part funded by the Assembly Government.  Each Enabler acts as an independent brokers who, in partnership with local authorities, housing associations, national park authorities and local communities, helps develop affordable rural housing solutions for village communities.

17 How successful do you feel that these actions have been in responding to rural housing needs?

Whilst these actions are having positive impacts in some areas, the Union believes it is merely the 'tip of the iceberg’ in terms of the need to take urgent and decisive action to mitigate these problems.

18. What would you say are the key obstacles to responding to housing needs in rural areas?

• The Union believes that the main obstacles to responding to housing needs in rural areas are:

• The competition for available land.  Given the number of environmental/ conservation designations, most land available for housing tends to be close to village conurbations.

• The price of land which, of course, as a limited resource, is affected by its availability.

• The actual cost of building and development costs, coupled with the limited number of building contractors in rural areas, which means less competition and thus higher prices.

• An inflexible planning system, which does not allow for the conversion of redundant farm buildings for residential occupation.

Other factors can include the NIMBY mentality.  

19. What further actions are required to respond more effectively to housing needs in rural area?

The Union believes there should be a positive move to reexamine the planning system to ensure that it is flexible enough to respond to housing needs without compromising the beauty and environment of the countryside.

There is also scope to encourage Housing Associations to invest more in rural housing stock, to re-examine Council Tax relief on second homes, and to encourage Government to increase the Social Housing Grant.

Other actions could include the release of public /Local Authority land at 'best price’ for affordable housing, the use of Section 106 restrictions to ensure that these affordable houses remain available to those who need them in perpetuity, and the re-examination of the 'right to buy’ council housing.

20 More specifically, what further actions are required by the Welsh Assembly Government to respond more effectively to housing needs in rural areas?

As above, but Government should also look at re-investing the capital raised previously from the sale of housing stock in the provision of new affordable homes.

Government should also:

• Work with farmers and landowners to identify possible development schemes,

• Reexamine planning regulations to enable flexibility in conversions of farm buildings for housing.

• Encourage the formation of community land trusts.

• Encourage the formation of selfbuild groups.

• Investigate the options for a refund of VAT on improvement, renovation and conversion of existing properties for housing purposes.

• Allow flexibility in Planning Regulations to enable the 'Agricultural Viability’ test to incorporate diversified enterprises in addition to conventional farming.

• Investigate the feasibility of releasing surplus  'public’ land at nominal or zero cost for the provision of affordable housing, owned by the WAG.

21. What do you consider to be the essential components of good practice for responding to rural housing needs?

The Union recognises the importance of rural areas in terms of the landscape and environment and does not advocate insensitive or unregulated housing development in Wales.  However, it does believe that there are opportunities and initiatives which can be adopted to improve the sustainability of the rural economy.

Ultimately, a range of factors, of which affordable housing is one, determines the enhancement and sustainability of the rural economy.

Sustainable incomes, the attracting and retaining of employers, and the development of a realistic transport infrastructure, are essential components of ensuring the longterm viability of many rural areas.

Also essential is the will and determination of all parties to tackle the issues pragmatically, irrespective of politics, sectoral or departmental interests.

This issue requires innovative and novel solutions and it is vital that a holistic and partnership approach is taken to deal with the range of structural weaknesses afflicting our rural areas.

22. Are there any other issues concerning housing needs in rural areas that have not been covered that you would like to raise?  In particular, are there issues that, while important in their own right, like housing design and environmental concerns, deserve particular consideration regarding their impact on social need?

One of the major concerns raised by members was the need to ensure that the provision of affordable housing should not be an excuse for poor planning or unattractive housing developments.Design should be functional and practical, blending with existing housing types in the area.  There should be adequate play areas for children and the layout should allow for sufficient parking and safe movement of traffic.

The design process should also ensure that access to local services, ie shops, schools, doctors’ surgeries, are fully incorporated into the planning process to encourage younger families to be able to stay in the area.

RANP/GD/L/7
26 October 2007