With its proximity to London much of the South East's housing stock is becoming priced out of reach of the local rural population

Duncan Mackay, Countryside Agency

The report contains regional data on 15 of the 20 headline indicators which the Agency monitors, as set out in the government's 1999 Rural White Paper.

The findings show the South East is a largely prosperous area and much of its population enjoys a relatively high quality of life.

However the agency said this popular image masks the various pockets of deprivation found all over the region.

Many areas are still deprived of basic services, such as a doctor's surgery or a general store.

The standard of public transport is also often poor.

Duncan Mackay, Countryside Agency regional director for the South East and London, said: "But perhaps the most widespread problem in the South East is that of housing affordability."

Foot-and-mouth

"With its proximity to London and the charm and beauty of the countryside, much of the South East's housing stock is becoming priced out of reach of the local rural population.

"These people are unable to match the economic power of those people moving into the countryside.

"We will continue to draw the government's attention to this and other regional issues."

He explained the foot-and-mouth crisis of 2001 focused attention on the countryside but although effects on rural businesses were in the limelight other issues were forgotten.

"The outbreaks, though relatively minor in the South East, did hurry in much needed changes to rate relief for rural shops and services," said Mr Mackay.

"They kick-started the provision of tailored business advice to rural small businesses and brought into focus the importance of buying produce locally.

"But this focus tended to push some of the other important issues out of the limelight - post offices, schools, healthcare services."

Rural grants

"We need to refocus on these issues, and this report will help do that."

Rural transport has been a particular priority for the agency, with a number of schemes to improve things, including the Rural Bus Subsidy Grant.

Mr Mackay said: "These show that, with public investment, it is possible to stop the rot in essential services.

"But of course more needs to be done. It is at the very local level that imaginative ideas for solving people's mobility problems are particularly important.

"Our new Parish Transport Grants, which can provide the financial backing to get ideas off the ground, are there for the taking," he said.