Rural communities need a new deal to deliver more affordable homes, says a report highlighting the scale of the housing crisis in the English countryside.

Launched to coincide with Rural Housing Week (2-6 July), the IPPR research finds that rural housing is less affordable to local people than in most urban areas.

The average rural house price of £320,700 is more than £87,000 higher than the urban average excluding London (£233,600).

A family with one child, earning one full-time and one part-time median wage in a mainly or largely rural area would spend 31% of their income on rent, compared to 26% or 19% of their incomes in most urban local authorities.

Only 8% of the housing stock in rural areas is deemed affordable compared to 20% in urban areas, and current delivery is failing to provide enough new homes.

These findings come as new IPPR analysis underlines how the population in rural areas is set to age rapidly over the next two decades, which could be accelerated if rural communities continue to lack affordable homes for working aged people.

Between 2014 and 2038, the working age population in rural areas is projected to decline by 75,000 people while the population aged over 65 will grow by around 1.5 million.

By 2038, there will be 63 people aged over 65 for every 100 working aged people, 24 more than in 2014 – this is more than double than in urban areas where there will be just 31 people aged over 65 to every 100 working aged people.

The flight of working-age people from rural communities could put some villages at risk of terminal decline.

With housing policy now near the top of the political agenda, the report says there is an opportunity to make the case for a tailored approach to delivering the affordable homes that rural communities need.

The report calls for a new deal for rural communities on affordable housing which would ensure that the English countryside isn’t just able to survive but thrive.

Darren Baxter, Research Fellow at IPPR said: “The high cost of housing in rural areas poses a threat to rural life. Without somewhere affordable to live, young people will leave the countryside, services will close and villages could face terminal decline.

“An ambitious programme of rural house building could not only have benefits for individuals but could enhance whole communities, halting the decline in rural life.”

Luke Murphy, Associate Director at IPPR said: “A lack of affordable housing is often seen as only an urban problem, but it is a critical issue in rural areas too, where housing is less affordable than in most towns and cities.

“At the heart of this crisis is a huge shortage of affordable homes and the failure of successive governments to develop policies which meet the needs of rural areas.

“We are calling for a new deal on housing for rural communities.

“This must include a new rural affordable homes programme, reform of the planning process to allow for the provision of affordable homes in villages and a commitment to put the needs of rural areas at the heart of government policy making.”