More than a thousand country pubs and village shops could close during the coming year due to the ongoing shortage of affordable homes in rural areas, it was warned today.

About 1,200 shops have already closed in rural areas during the past two years, while more than 600 country pubs have closed during the past 12 months, according to the Rural Shops Alliance (RSA) and British Beer and Pub Association (BBPA).

The groups warned there was little sign the rate of decline was slowing down, and estimated about 33 village shops and 54 country pubs could go out of business each month during the coming year.

They said the closures were “ripping the heart out” of community life.

Closures were blamed on declining demand for services in villages where local families had been priced out of the market by an influx of wealthy commuters and second-home owners.

Eddie Main, secretary of the former Telford & Wrekin Licence Victuallers Association, said it was “survival of the fittest”.

He said: “I think pub companies have had a change of heart and are trying to help their tenants, but it’s a bit late now for those who weren’t helped in the first place. Some companies priced their tenants out of business.”

The gentrification of the countryside and the shortage of affordable homes has also made it difficult for pubs and shops to find workers who can afford to live locally on modest wages.

Mr Main said: “Pubs have been the heart of the village. I used to go to the Cleveland Arms in High Ercall.

“It used to be the centre of village life with meetings held there. It closed, but fortunately it has reopened now.”

The National Housing Federation, which has called for urgent action to be taken to halt the demise of the countryside, said the number of people on waiting lists for affordable housing in England had soared to 750,000.

It estimated about 100,000 affordable homes need to be built in rural areas of England during the coming 10 years to meet demand.

The federation is calling on local authorities to draw up action plans to address the housing needs of their communities.

By Catherine Roche