Affordable Homes Key to Unlocking Rural Business Growth

New research commissioned by Community Action Northumberland (CAN) reveals the growing pressure rural employers face due to a shortage of affordable and suitable housing for workers across Northumberland.  Nearly one in two businesses in rural Northumberland cited affordable local housing for staff as a key barrier for their businesses.

The report, Rural Business Perspectives on Northumberland’s Housing Needs, was commissioned as part of CAN’s DEFRA-funded Rural Housing Enabler programme and delivered in partnership with National Centre for Rural Innovation (NICRE).

Findings show that 60% of rural firms in Northumberland rated affordable housing availability as ‘poor’ or ‘very poor’, compared to 27% for rural Durham.  Many businesses say they've had to find workarounds – from subsidising rents to building temporary accommodation – to secure the workforce they need.

CAN’s Rural Housing Enabler, Vince Walsh, said:

"This research shows how deeply housing issues are tied into the fabric of rural life – from business growth and sustainability, to young people’s opportunities and community resilience".

The research indicates a need for holistic, locally led approaches – including joint surveys with businesses and communities, greater use of local knowledge from estates and landowners, and support for community-led housing initiatives.  

One promising model is already underway in Seahouses, where The Inn Collection Group has introduced subsidised staff housing near its coastal pub, The Bamburgh Castle Inn. Other businesses like MSP Ltd in Alnwick are exploring local partnerships to support long-term housing solutions and skills hubs.

Natalie Partridge, report co-author from NICRE, Newcastle University, said:

"Rural enterprises and employers have valuable insights into the needs of their staff and local communities, and a wealth of ideas for the future of rural housing.  A more holistic approach to understanding and addressing housing needs could unlock economic growth and help rural communities thrive.  Our ongoing research will continue to identify innovative practice and find new ways for rural businesses to contribute to shaping cross-sector solutions".

The report’s recommendations also include piloting a Northumberland business-led housing needs survey, greater data-sharing around social housing allocations, and collaborative efforts to boost housing provision on private and estate-owned land.

This interim report marks the start of further research and consultation, including with visitor economy employers, local authorities, and community-led housing groups.

Download the full report HERE