Rural exception sites are located on the edge of rural settlements, and are usually small in size. They are not allocated within the local authority’s adopted development plan and would not normally be consented for residential development but are considered for/approved to deliver affordable housing. 

Their purpose is to enable the building of affordable homes in rural areas with the aim of addressing local housing need and sustaining rural communities.

Most adopted local plans will include a policy relating to these sites, in line with the National Planning Policy Framework (NPPF)(2021).

Delivering affordable housing in this way is a means of opening up land which would otherwise be constrained by local planning policies and enabling landowners to put appropriate sites forward for a use that is of greater value than agricultural land.   

Applications for rural exception sites can be considered within designated areas such as Green Belt, Areas of Outstanding Natural Beauty (AONB) and National Parks, however they must still align with other policies in local plans and the NPPF. Sites must therefore be of high quality design, an appropriate scale, must have suitable and safe access and must be located in areas of low flood risk, among other key considerations.

Any kind of affordable housing can be delivered, including affordable rent, intermediate housing including first homes, or social rent, provided there is adequate evidence of local need. The applicant applying for permission should liaise with the parish or town council to ensure such a scheme is supported.

A planning application will also need to be accompanied by a local housing needs survey, which will highlight if there are people in the local community who are in housing need but unable to engage in the general housing market due to a low level income.

Land values for rural exception sites are typically much lower than those for market housing, therefore in order to improve the viability of such development and thus its appeal to developers and landowners, the NPPF allows for some market value housing on the site to be delivered as well. However, adequate justification must be provided when submitting an application as it is imperative that affordable housing remains the primary use.

Once a scheme for affordable housing is permitted and developed on a rural exception site, it must always then be used for affordable housing, which can be secured through a section 106 legal agreement. It is not uncommon for a planning condition to be applied to any approval which seeks to ensure that the dwellings are used to accommodate either current residents of an area or those who have an existing family or work connection there.

Further information

Contact Lucy Stephenson or Rebecca Housam

Savills Planning