The recession has hit a charity that built affordable housing so people could stay in their home villages.

Trustees of the Rural Housing Trust have decided to wind down development activities of both the trust and its subsidiary, RHT Developments Ltd.

Among the villages to benefit from the RHT were Stelling Minnis and Wingham.

Cllr Pamela Carr, of Stelling Minnis, who had worked with the trust when six homes were built in the village, said: “The RHT was for people in the village who grew up there but could not afford to live there.

“We had six homes built here – three for rent and three for part-ownership – and it was an ideal number.

“The people in them were thrilled and it is the only affordable housing in the village. Those six homes have children who use the school, they use the local shop and the pub, so it affects everybody. I have nothing but praise for the trust.

“But I’m probably not surprised in one way, in that they spent thousands of pounds developing schemes and then didn’t get permission.”

The trust was recently refused permission to build affordable housing in Elham.

In a statement, the RHT said: “Although demand for affordable rural housing is high and there is potential value in its work, the organisation is unable to withstand the prevailing, difficult trading conditions.

“The trust generated the larger part of its income from developing small village schemes for registered social landlords.”

Redundancies were announced at the trust following a failure of merger talks.

The trust, which has the Princess Royal as its patron, intends to retain the equity in its 443 shared ownership homes and to continue its aims to further the provision of affordable rural housing.