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<p>This Government believes that meeting the housing needs of rural communities is
important. We’re increasing the supply of affordable housing and investing over £12
billion in affordable housing over 5 years, the largest investment in affordable housing
in a decade. This includes the new £11.5 billion Affordable Homes Programme, should
economic conditions allow. <br> <br> Since April 2010, over 190,000 affordable homes
have been provided in rural local authorities in England. And between April 2015 and
March 2020, 11% of new build additional Affordable Homes have been delivered in villages
with a population of fewer than 3000, and we recognise the importance of these settlements
for both economic and housing growth. <br> <br> The Government has given councils
a comprehensive range of tools to deliver a new generation of council housing and
have a key role in the delivery of affordable housing:</p><ul><li>A package of reforms
that give local authorities increased flexibility over how they can spend their Right
to Buy receipts on replacement homes. This package will make it easier for authorities
to fund homes using Right to Buy receipts including homes for social rent; allow authorities
greater flexibility over the types of homes they provide to reflect the needs of their
communities; give authorities more time to use receipts and to develop ambitious build
programmes; and make sure more new build replacements are delivered instead of acquisitions,
contributing to net supply.</li><li>Government abolished the Housing Revenue Account
borrowing cap in 2018, enabling local authorities to borrow for building.</li><li>In
terms of planning, national policy is clear that affordable housing contributions
should not be sought for developments of fewer than 10 units. This is to ensure that
a disproportionate burden of developer contributions is not placed on Small and Medium-sized
builders. In designated rural areas policies may set out a lower threshold of five
units or fewer.</li></ul>
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