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With a £39 billion government programme set to boost affordable housing delivery, Rural Exception Sites are emerging as a timely and strategic opportunity for landowners.
From 2026, the government will launch a 10-year Social and Affordable Homes Programme (SAHP), aiming to deliver 300,000 homes across England, 60% of which will be allocated for social rent. This significant investment signals a renewed focus on housing need, particularly in rural areas where affordability challenges are acute.
For landowners, this policy momentum presents not only a responsibility but a unique opportunity to unlock value, supp ort local communities, and contribute to long-term rural sustainability.
Across the countryside, rural communities are facing growing pressures. One of the most urgent is the shortage of affordable housing for local people.
In North Yorkshire, recent research conducted by the Upper Dales Community Land Trust and the local Rural Housing Enabler revealed a need for at least 17 new affordable homes in Swaledale and Arkengarthdale. Most of the respondents in housing need had household incomes below £20,000, making traditional homeownership unattainable when average house prices exceed £300,000.
Villages that once supported families across the generations are finding it harder to keep hold of younger residents, key workers, and even farming families. As a result, schools struggle with falling numbers, village shops close their doors, and local employers face challenges recruiting and retaining staff.
Landowners are in a unique position to help alleviate this issue. By considering land for Rural Exception Sites, they can play a direct role in sustaining their communities while also realising financial and strategic benefits.
Rural Exception Sites are parcels of land, typically on the edge of villages, that would not normally be granted planning permission for open-market housing. The ‘exception’ lies in their purpose: to deliver affordable homes for local people with strong ties to the area, whether through family or employment.
Rural Exception Site schemes are modest in scale and designed to reflect the character of the settlement. They respond to a proven local housing need and offer a planning route that balances countryside protection with the essential delivery of affordable homes.
There are two key reasons why landowners should be live to this opportunity:
While Rural Exception Sites are not about maximising land value, they do offer a reasonable return—particularly when land has limited development prospects. Such schemes often make productive use of marginal or lower-grade farmland that has limited value, generating capital through enhanced sale values.
In this way, a carefully planned Rural Exception Site can help fund other diversification initiatives, from environmental schemes to tourism ventures, improving the overall resilience of the holding.
Affordable homes for younger families and accessible bungalows for older residents help ensure both generations can live locally and sustainably, and that essential rural services— from schools and shops to transport networks—remain viable.
Landowners who enable affordable housing are seen as proactive community partners, enhancing relationships with residents and planning authorities. A well-designed Rural Exception Site becomes a visible commitment to community sustainability and part of a landowner’s legacy.
Landowners have several options for bringing forward Rural Exception Sites, each offering different levels of involvement and outcomes:
Regardless of the delivery route, early engagement with the local planning authority and professional input is essential. Surveyors and planning consultants assess site viability, evidence housing need, and ensure that design proposals reflect local character and planning policy.
As rural housing pressures continue to mount, Rural Exception Sites offer landowners a constructive route through planning that balances community need with landowner opportunity. With the government’s Social and Affordable Homes Programme set to enhance viability from 2026, now is the time for landowners to engage with this strategic planning route.
If you are considering how your land could support rural affordability, our Planning and Development team would be pleased to offer tailored advice and explore suitable options with you.
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