A dramatic rise in the number of renters in rural areas has prompted England’s largest councils to call for a new long-term plan for housing.

The number of households in private and social rentals has increased by more than half a million in rural areas over the past decade, outpacing London and major cities, according to a report from the County Councils Network.

Rented properties make up 31% of all housing in English counties, with renting in rural areas increasing by 19% between 2011 and 2021 to a total of 550,000 more households.

Private renting has experienced a significant uptick in particular, with 450,000 extra households renting in 2021 compared with 2011 – growth of 31% that is higher than the 25% in London. About 45% of this increase were households in the south-east and east of England, suggesting more people have been priced out or chosen to move out of London into the surrounding counties.

“It is widely accepted that the housing crisis is one that is worsening, with rising unaffordability locking hundreds of thousands out of getting on to the property ladder,” councillor Richard Clewer, the County Councils Network’s housing and planning spokesperson, said. “This new data reveals the impact of this in rural and county areas: with the rise in people renting in these places outpacing even London and the major cities, while home ownership rates have gone into decline.”

With the cost of a property at £309,000 outside London – and the average property price now 11.1 times higher than average annual wages – there have been almost 200,000 fewer households that purchased a property in county areas over the past 10 years.

The County Councils Network warned that the uptick in renting, combined with the unaffordability of properties, is having an impact on county and rural councils. Waiting lists for council housing in those areas have grown by 10% between 2018 and 2023 – an increase of 40,000 households. Meanwhile, temporary accommodation use has surged by 52% over the past five years, and homelessness has increased by 18% over the past three years – an increase of 4,500 people.

The report outlines a number of recommendations, including adequate funding for planning authorities, progress on the renters’ reform bill, a review of right to buy and the implementation of a licensing scheme for holiday lets. It called on the next government to come up with a plan to remedy “a planning system that has been in a state of flux for a long time”, Clewer said.

“The next government should set out a long-term plan for housing, incorporating the recommendations we have put forward and with councils a key consultee, ensuring buy-in from the sector,” he said.