New report highlights how lack of housing is holding back rural businesses in Northumberland

Nearly one in two businesses in rural Northumberland cited affordable local housing for staff as a key barrier for their businesses.

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 the National Innovation Centre for Rural Enterprise (NICRE).

Findings show that 60% of rural firms in the county rated affordable housing availability as ‘poor’ or ‘very poor’, significantly higher compared to 27% for rural Durham.

Many businesses are being forced to find workarounds – from subsidising rents to building temporary accommodation – just 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.”

It calls for more holistic, locally led approaches such as 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: “A more holistic approach to understanding and addressing housing needs could unlock economic growth and help rural communities thrive.”