Private rented housing in France

This paper reviews the evolution of the French private rented housing sector. It traces post-war policy developments, putting the specific tenure in a wide housing market context. The paper reviews France’s intricate system of personal and property—oriented housing subsidies, and assesses their demand and supply side repercussions. Discussion of the general post-war decline in private rented housing as a means of housing consumption is situated in the evolution of the national housing system, and the paper alludes to some key regional and local differentiations. The paper discusses the market contexts for attempts to revitalise the sector, concluding that broad fiscal measures are likely to have greater impact than rent decontrol. Madhu Satsangi is Lecturer in Housing Studies at the School of Planning and Housing, Edinburgh College of Art/Heriot-Watt University. Madhu has researched housing markets, voluntary and private-sector housing finance and housing management issues.     

The different faces of private rented housing

The relation between public policy and the private rented sector is usually unclear. The private rented sector often suffers from public policy, although private landlords mostly enjoy fiscal advantages as well. In many European countries, private renting housing has been losing ground. Nevertheless, private rented housing fulfils a number of useful functions in the housing market: as a tenure for urban starters; for the elderly; and for a mobile, well-to-do segment of the population engaged in flexible labour markets. The main lines of seven country profiles are sketched here: (West) Germany, England, the Netherlands, Sweden, France, Canada and the United States. In his comparative contribution at the end of this special issue, Maclennan points out that the private rented sector has indeed declined in many European countries. But he also shows that in countries like the USA, Germany and Sweden the sector has had a broadly constant share since about 1980. In the future, private rented housing will remain an attractive sector, at least for those who are unable to afford owner-occupied housing and those unable to gain access to social housing. Hugo Priemus holds the chair in housing at Delft University of Technology and he is managing director of OTB Research Institute for Housing, Urban and Mobility Studies. Duncan Maclennan is McTaggart professor at the Centre for Housing Research and Urban Studies, University of Glasgow, Great Britain.     

Commercial rented housing: two sectors in the Netherlands

This contribution analyses the different developments and roles of two commercial rented sectors in the Netherlands: rented dwellings owned by individuals (private landlords) and rented dwellings owned by institutional investors. Characteristics of properties and households are specified in relation to tenure. An analysis follows of household characteristics of non-movers and movers to, from and within the commercial rented sector. Some policy issues are dealt with, which are relevant for the commercial rented sector. The commercial rented dwellings owned by persons are predominantly pre-war, small, cheap dwellings with a modest quality. They form part of the urban renewal problem. The owners are small-scale landlords, mostly not professional, who do not invest in ambitious renovation or new dwellings. For this sector the future is not very bright. For starters on the housing market and elderly people, this urban sector may have a limited function. The commercial rented dwellings owned by institutions are predominantly post-war (built after 1960), spacious, expensive dwellings with a high quality. The owners are pension funds and insurance companies which sell their properties often after 15 to 20 years when conditions are favourable. This sector has a strategic function at the upper side of the rental market where rents are decontrolled. Well-to-do households in a flexible urban labour market and elderly people are the most important target groups for this sector. This sector demonstrates how a free rental market functions and enriches the whole housing sector with relevant market signals. Hugo Priemus holds the chair in housing at Delft University of Technology, where he is also managing director of OTB Research Institute for Housing, Urban and Mobility Studies.     

The affordability of “affordable” housing in England: conditionality and exclusion in a context of welfare reform

Abstract

Contemporary debates around affordability have largely focused on homeownership and private renting. This article considers the affordable social rented sector in England, in which reforms to social welfare assistance, reduced security of tenure, and a shift towards mid-market rents, are changing access to ‘affordable’ housing for those on the lowest incomes. Drawing on in-depth interviews with housing associations and stakeholders, the article highlights the increasing use of affordability assessments for prospective tenants. These assessments interact with mid-market rental products to increase the potential for exclusion from affordable housing on the grounds of ability to pay. This conditionality is applied not only at the point of tenancy access, but also at renewal of fixed-term tenancies. The research highlights that the combination of welfare and housing policies, in the context of a financialising housing association sector, has the potential to erode access to social housing for those who are perceived as a financial risk, reshaping the focus of social housing.     

The Housing Market and Tenure Decisions in Chinese Cities: A Multivariate Analysis of the Case of Guangzhou

sing a sample of recently completed 'commodity housing' in Guangzhou, i.e. dwellings that were built by development companies and sold or rented at full market price in the primary market, a multi-level logit analysis of the housing allocation process and of tenure decisions was conducted. The results of the statistical analysis are generally in line with the nature of housing market segmentation and the forces governing housing allocation and consumption in China in general and Guangzhou in particular. Residents in open market housing generally have higher incomes and hold higher-status jobs than those in the subsidised sectors. However, at the same time, the getihu or petty traders, who rank low in terms of occupational status, are also likely to be occupants of open market housing. Household characteristics also show systematic variations between occupants of different types of subsidised housing. In particular, residents of resettlement housing tend to occupy lower-status jobs. In terms of tenure choice, the results for the open market housing residents are to some extent consistent with studies conducted in market economies. In the subsidised sectors, the factors underlying homeownership are quite different between housing types. Occupation, for example, has significant effects on homeownership in both work unit housing and housing bureau housing, but the nature of the influence is quite different in each case. In the case of resettlement housing, none of the household attributes, with the exception of the head's year of service in present employment organisation, was found to be significant.     

The demand for social housing in England in the 1980s

This paper presents an empirical analysis of the demand for social rented housing in England, by combining predictive models for the main component flows. A methodology is developed to overcome the well‐known limitations of waiting list evidence. This enables generalisations about the determinants of demand as well as highlighting policy issues for resource allocation.     

‘They Seem to Divide Us’: Social Mix and Inclusion in Two Traditional Urbanist Communities

Mixed tenure communities have become an important element of UK housing policy in recent decades. Whilst valued by policy-makers for generating a range of benefits, particularly for residents living in social rented housing, the empirical literature suggests that tenure mixing is neither a sufficient nor a reliable remedy for addressing issues associated with concentrations of poverty, disadvantage and social exclusion. This paper reports on a doctoral research study that considered tenure mixing practices at two traditional urbanist communities in the UK: Poundbury, Dorchester, and New Gorbals, Glasgow. Conceptually, the paper uses Young's critiques of residential segregation and the integration ideal to evaluate the two communities. Methodologically, it draws on qualitative interviews with residents, planners and social housing providers. The research findings contradict many aspects of Young's ideal and highlight the complex and multidimensional nature of integration in practice. Reflecting on these findings, the paper identifies five housing policy and research priorities that might usefully be pursued in future work.     

Three phases of Danish cohousing: tenure and the development of an alternative housing form

Abstract

Broadly understood as a housing form that combines individual dwellings with substantial common facilities and activities aimed at everyday living, Danish cohousing communities (bofællesskaber) are often seen as pioneering and comparatively successful. Yet, in spite of frequently being mentioned or addressed as case studies in the growing literature on cohousing and, more generally, alternative forms of housing, Danish cohousing experiences have not been systematically analysed since the 1980s. Emphasizing broader trends and evolving societal contexts, this article investigates the development of Danish cohousing over the past five decades. Through this historical analysis, the article also draws attention to the largely neglected issue of tenure structures in the evolution of cohousing. The multifaceted phenomenon of cohousing cannot and should not be reduced to issues of tenure. But if cohousing is to spread and contribute affordable alternatives to mainstream housing, tenure structures should be a key concern.     

Path Dependence and Critical Junctures in Irish Rental Policy: From Dualist to Unitary Rental Markets?

Ireland is categorised as an example of the dualist rental system in From Public Housing to the Social Market—Kemeny's (1995) landmark comparative study of rented housing. This article, which examines the historical development of public subsidisation of housing and regulation of tenants' occupancy rights in Ireland, argues that contrary to Kemeny's (1996) assumption, the dualist model has recently unravelled in this country and been replaced by an embryonic unitary rental model. This is evidenced by increasing tenure neutrality of government housing subsidies; equalisation of the secure occupancy rights and minimum standards regulations across most of the rented sector and the recent decline of home ownership and expansion of renting for the first time since records began. Using ‘path dependence’ and other concepts from the historical institutionalist literature, the reasons for these developments are explored as are their implications for Kemeny's (1995) thesis.     

Private renting in England

This paper presents an overview of the privately rented sector of the housing market in England. The first section sets out some key features of privately rented housing in England that distinguish it from many other advanced industrial nations. The second section briefly summarises the main reasons for the decline of private renting. This is followed by sections dealing with the demand for private rental housing and tenants’ rents and incomes. The paper then moves on to the supply side, focusing on the stock of privately rented dwellings, the nature of private landlordism in England, finance and rates of return. The final two sections examine rent control and security of tenure legislation and current policy debates about the future of the privately rented sector.     

Good dwellings for all: The case of social rented housing in Sweden

During the last decade many European countries have experienced a decline in the production of social rented housing, and there has also been an increase in sales of such dwellings. However, in Sweden social rented housing is still treated as an integral part of Social Democratic housing policy. According to this policy it should not be regarded as a residual tenure only to people in special need of housing. On the contrary, the official goal is to make it as efficient as other tenures in providing good dwellings for all. In order to popularise this tenure a number of measures have been introduced during the 1980s, such as diversification of the stock, decentralisation of management, increasing tenants’ influence and ambitious renewal programmes. Sales of municipal housing have been kept at a low level, although more sophisticated forms of privatisation have been observable. This paper reviews recent tendencies in social rented housing in Sweden, ending up with a discussion of its political basis and prospects.     

Defining and measuring housing affordability using the Minimum Income Standard

Abstract

There is growing concern about a crisis in housing affordability in the UK, renewing longstanding debates about what constitutes ‘affordable’ housing. The growing use of the private rented sector by low income households has also led to increased interest in understanding the impact of housing costs on living standards. This paper builds on existing work on ‘residual income’ measures of housing affordability, accepting that what households can afford to pay for housing is related to their ability to cover other costs, and so not directly proportional to income. It proposes a new approach to defining and measuring housing affordability, based on the Minimum Income Standard (MIS). The paper then uses data from the Family Resources Survey (2008/09 to 2015/16) to examine housing affordability within the rented sector across the UK, exploring the value of this measure both in revealing the scale of the ‘problem’ and assessing the likely impact of suggested interventions.     

Tenure type landscapes and housing market change: a geographical perspective on neo-liberalization in Sweden

Abstract

Discussions of tenure mix have received renewed interest as many have suggested that neo-liberalization has made way for gentrification of neighbourhoods and increasing segregation. Yet, few scholars have studied country-wide changes in tenure mix, due to the lack of data and appropriate methods. In this article, we propose to use tenure type landscapes to analyse changes in housing policy. We do so while acknowledging the evolution of housing policies in Sweden since 1990. Using individualized and multi-scalar tenure type landscapes to measure change in neighbourhoods, we analyse housing clusters in 1990 and 2012. We show that the tenure landscape in 1990 at the height of the welfare state was fairly diverse and mixed. During the next 22 years, however, the landscape changed to become more homogenized and dominated by ownership through tenure conversions and new housing. We argue that awareness of these changes is essential to understanding present and future segregation and gentrification processes.     

Private Renter Households: Who Are The Long-Term Renters?

Despite the perception that Australia's private rental market serves principally as a short-term transitional housing tenure, 40 per cent of households in this sector have rented for longer than ten years. This paper enlarges the housing career concept by proposing two types of long-term private renters: continuals (always rented since leaving the parental home) and returners (rented, purchased home, rented again). By using the multivariate statistical technique, CHAID, the analysis demonstrates that continuals and returners form ten distinct renter segments, defined largely by differences in age, marital status, source of income and household income. In the main, continual segments feature renters in the 30–44 year age group, not yet married or, if married (or formerly married), reliant on social security payments. In contrast, most returners earn private incomes, and tend to be older than the continuals (generally over 45 years). The segment most strongly associated with returning to rental housing exhibits the highest household income level, prompting speculation that some households may choose renting over ownership. The analysis further reveals that continual longterm renters encounter a disproportionate share of housing difficulties, including high rents, poor affordability and excessive residential upheaval.     

Spatial and Social Divisions within British Cities: Beyond Residualisation

The literature on changing residential patterns in cities attributes different degrees of importance to economic restructuring and to changes in housing. In Britain, where a significant share of housing provision is not provided through the market, the references to socio-tenurial polarisation and the residualisation of council housing have emphasised the importance of housing tenure. The nature of housing restructuring has affected both the pace and pattern of urban change. At the end of the 1990s problems associated with deprived neighbourhoods are arousing policy attention and this has given further prominence to housing tenure differences and residualisation. This paper reviews evidence which suggests that a wider range of housing related factors are now influencing changing patterns in British cities. These especially relate to divisions within home ownership and to differences related to ethnicity and cohort. The evidence presented cautions against placing tenure at the centre of analysis of change and policy responses or equating neighbourhoods of social rented housing with area deprivation.     

Social Housing as a Transitional Tenure? Reflections on the Netherlands' New Housing Memorandum 2000-2010

This contribution gives some reflections on the Netherlands' New Housing Memorandum 2000-2010, which was published on 15 May 2000. This Housing Memorandum urges the housing corporations (the social housing organisations which own 37 per cent of the housing stock) to sell 500 000 dwellings in 10 years. This seems to confirm Harloe's assertion that social housing in Europe is only a transitional tenure. Even in the Netherlands-champion of social rented housing within the European Union-the owner occupied sector would seem destined to marginalise the social rented sector in the long run. This paper argues that the housing corporations, being private, independent social entrepreneurs, will be only partially inclined to take the political message of the Housing Memorandum to heart. It is expected that the Dutch social rented sector will remain a differentiated sector and continue to blossom alongside home ownership. Harloe's theory will, in short, not be confirmed by the housing developments in the Netherlands.