THE Liberal Dempocrats, whose members represent dozens of rural seats in Parliament, are demanding new thinking to help rural areas ride the credit crunch, it was revealed at the weekend. And the rural housing market is one of their major targets.

Recession means tougher times for rural communities and tougher decisions for how we use land. Let’s build our national housing target from local targets that reflect need on the ground. Bottom up

Nick Clegg - Liberal Democrats

Speaking at a conference in Sheffield organised by the Campaign to Protect Rural England, the LibDem leader Nick Clegg outlined a new vision for the countryside.

The current recession, he said, demanded a “new vision to guide policy and decision making” and went on: “Recession means tougher times for rural communities and tougher decisions for how we use land. Let’s build our national housing target from local targets that reflect need on the ground. Bottom up.

“That means trusting people who know best rather than picking numbers out of the air. Central Government’s job then becomes one of avoiding national housing bubbles like the one that has just burst. “The present housing crisis shouldn’t just be a dip, a slump… a hiccup after which we return to the same old sky high prices.

“We need a permanent end to irresponsible lending. Monetary policy should be used to eradicate boom and bust in our housing market. And the Bank of England should take house prices into account when calculating inflation, something it presently does not do.”

Shaun Spiers, CPRE’s Chief Executive, commented: “It is refreshing to hear a Party Leader call for a sensible response to the current turmoil in the housing market.

“There remains a pressing need for more affordable homes for rural communities, and we need to take this opportunity to build a fresh, environmentally sustainable approach to meeting the nation’s housing needs. Politicians must learn a lesson from the current crisis, and not just aim for a return to business as usual.”