"Grow by building new homes in partnership with rural communities"
English Rural continued its commitment to addressing the acute need for affordable homes in rural communities during 2023/24.
This year saw us on site building more homes than at any time in the past decade, reflecting both new and previously stalled developments coming to fruition. While this scale of delivery will provide significant value to communities and residents, it also presented challenges amidst a volatile economic environment.
The increased cost of borrowing, elevated inflation rates, and rising material and labour costs impacted the viability of some schemes. In response, we conducted a comprehensive review of our development appraisal process. This resulted in an updated model that allows for earlier identification of grant or cross-subsidy requirements, enabling more effective planning with our partners.
Despite the sector-wide challenges we've faced this year, our commitment to delivering high-quality, affordable homes in rural communities remains unwavering, and we're proud to have completed more homes than planned, whilst also laying the groundwork for future growth.
Looking ahead, our development opportunities will need to demonstrate clear financial viability on a standalone basis. This approach reflects a more prudent allocation of internal resources. We have recalibrated our growth ambitions to a sustainable development programme of 25-35 homes annually, which aligns with our historical average while ensuring financial stability.
Our updated Development Strategy now places increased emphasis on enhanced quality, design, and build credentials. We remain committed to prioritising Rural Exception Sites, which have always been the mainstay of English Rural's growth.
However, we are focusing our efforts and resources on areas where there is not only a need for affordable homes, but also where local partners actively encourage, support, and promote our work. This targeted approach aims to maximise opportunities for success while mitigating against speculative losses.
This year, we exceeded our completion target, delivering 32 homes against a target of 16. These new homes were spread across several rural communities, including Seal, Sandhurst, Peene and Shepherdswell in Kent, and Hambledon in Surrey.
This successful delivery across multiple locations demonstrates our ability to bring projects to fruition despite a challenging environment.
As we move forward, we remain committed to our strategic ambition of growth through new home development. However, we will do so with a renewed focus on financial viability, quality, and strong partnerships with rural communities. This balanced approach will ensure we continue to provide much-needed affordable homes while maintaining our financial resilience and commitment to existing residents and properties.
…with a further 82 homes in the development pipeline.
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82 homes in our development pipeline, with 32 new affordable homes handed over to residents
Comprehensive review of development viability and strategy, resulting in a long-term sustainable growth plan
Completion of our first A-rated environmental homes, setting a new standard for energy efficiency
Establishment of strong working relationships in key new districts, expanding our geographical reach
One of English Rural's affordable homes under construction.
>> Rigorous monitoring of contracted homes and their financial performance is crucial for maintaining project viability and overall financial health.
>> Successful delivery of homes in challenging areas requires proactive engagement with local and national partners to foster a supportive policy and funding environment.
