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argues that contrary to Kemeny's (1996) assumption, the dualist model has recently unravelled in this country and been replaced by an embryonic unitary rental model.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.     

Investment in Rental Housing in Australia: Small Landlords and Institutional Investors

The private rental sector has always been an important part of the Australian housing system. Although declining in relation to home ownership in the two decades after the Second World War, private renting has never fallen below 20 per cent of the total housing stock, a share that it has maintained over the past 40 years. Small, scale petty landlordism has characterised this market sector, with a majority of rental stock owned by individuals. This paper summaries the specific characteristics of rental ownership in Australia, drawing on a recent national survey of landlords carried out by the Australian Bureau of Statistics and identifies the key factors responsible for the persistence of this pattern of ownership. The reasons for the absence of institutional investors from this sector are then discussed, based on selective interviews with key players in the banking, insurance and superannuation industries. Current changes in market and policy environments are identified which may, however, increase the likelihood of institutional involvement in the provision of rental housing, in general, and social housing, in particular. The analysis is informed by the results of financial modelling carried out at the Australian Housing and Urban Research Institute.     

Interpreting the rise of long-term private renting in a liberal welfare regime context

In liberal market Anglophone nations, where private rental housing is typically lightly regulated, little is known about the household-level drivers of recent private rental sector growth. In Australia, where long-term private renting (10 years plus) has doubled since the 1990s, growing numbers are thus exposed to risks of landlord-initiated moves and unpredictable rent rises for lengthy periods. Our research suggests that although long-term renting mainly reflects adaptation to increasingly unaffordable home ownership, lifestyle choices are also significant—at least in Australia’s major cities where renting in a ‘desirable’ area may be preferred to owning elsewhere. While many tenants appear sanguine about their housing security, this is highly problematic for lower income residents lacking other choices, many of whom appear likely to remain lifelong renters. The paper contributes an additional perspective to debates about the interplay between changing housing market dynamics, lifestyles and housing choices/constraints.     

Privatising Public Housing in Hong Kong: Its Impact on Equity

Three processes are examined to assess the impact on equity of policies to privatise public housing in Hong Kong. These are changes in the inter-sectoral distribution of subsidies, changes in the quality and quantity of public rental housing, and changes in access to public housing. It is found that housing subsidies have remained concentrated in the public rental sector, and the quantity, quality and amenity of housing in this sector has actually increased. The Hong Kong Government has not sought to reduce eligibility for and access to public housing; the lengthy waiting list to join this tenure reflects increases in demand since the privatisation policy was introduced. Thus, unlike the experiences of many other countries, the Hong Kong Government's policy to privatise public housing has not had a notably adverse impact on housing equity to date.     

Population Mobility, Tenure Choice and Institutional Factors

The Hong Kong government is involved deeply in the housing market. It provides public rental blocks as well as subsidised housing for sale. Government intervention has created various institutional factors in the form of relocation restrictions and subsidies. Little research has been done in the past to address how mobility is affected by institutional factors, in terms of the unique tenure structure in Hong Kong. This research aims to bridge this gap. It is found that government policy has a significant effect on the mobility of households, in particular the public rental sector. Further, the patterns of tenure choice are significantly different for households of public and private sectors. There are signs that the government is intending to minimise its role in the housing system. The suspension of the HOS programme together with the cancellation of loan subsidies could further restrain the mobility of public sector households. Institutionally induced spatial lock-in among public sector households will be aggravated in the near future. It is recommended that the loan scheme should be reinstated to provide an alternative and incentive for the households in the public sector to relocate and return their flats to the Housing Authority. This can help relieve the financial pressure in the face of a budget deficit because loan subsidies are more cost effective than subsidies in kind.     

Band-aid or Panacea? The Role of Private Rental Support Programs in Addressing Access Problems in the Australian Housing Market

Australia has a significant private rental market with over a quarter of households renting their home from a private landlord. Many of these households are on low incomes and receive assistance from private rental support programs provided by each Australian state and territory. In spite of these large numbers, little is known about the effectiveness of policy initiatives to assist low-income private renters. Limited knowledge of the private rental support programs stands in stark contrast to the detailed research on programs established to address homelessness and problems within the public housing sector. This paper addresses this lacuna by reporting on the suite of initiatives currently funded by state governments to assist low-income households (for example, bond loans and rental deposits, advice and help with removal expenses). Based on a comprehensive study of Private Rental Support Programs (PRSPs) commissioned by the Australian Housing and Urban Research Institute, it is argued that though policies to assist vulnerable tenants are acknowledged as a success by practitioners and clients, their effectiveness as a policy instrument is undermined by wider structural changes in the housing market. The paper concludes that the stress faced by many vulnerable households is likely to intensify over the coming years thereby compounding the pressure on state Housing Authorities to provide more comprehensive packages of support that extend beyond just a ‘one-off’ form of assistance.     

Changing directions in Australian housing policies: The end of muddling through?

From the post‐war period through to the 1980s, Australia's housing system was dominated by tenure‐based policies directed towards home ownership and the provision of public housing. Private tenants were virtually excluded from housing assistance of any form. The 1990s, however, have seen an apparent U‐turn in housing policies with elimination of explicit home ownership policies, the withdrawal from direct involvement in public housing funding and a rapid expansion of rental assistance for private tenants. Australia is about to follow its New Zealand neighbour in undertaking a wholesale shift away from direct intervention in the production of housing and moving towards consumer subsidies which rely on the effective operation of the private sector in meeting housing needs. This paper provides a brief overview of changes in policies towards home ownership, public rental and private rental, a framework for interpreting these and an assessment of the appropriateness of the directions currently being followed in light of current economic trends.     

Movement Into and Out of the Private Rental Sector in England

The private rental sector in England is often regarded as a largely transitional tenure. It is seen as forming the lower rung of a hierarchical tenure ladder, up which households move over time on the way to an ultimate destination of owner occupation or, failing that, social rented housing. It has been recognised, however, that households may 'fall out' of the two main tenures and return to private renting. Drawing on data from the 1996-97 Survey of English Housing, this paper examines the characteristics of households that had moved into or out of the private rental sector in the previous 12 months. Although the sector remains a net exporter of households, it was found that only part of the reverse flow back into private renting could be accurately described as a process of 'falling out' of the two main tenures. A significant share of the movement from social housing into private renting was due to households who had moved in order to live in a better house or neighbourhood. The paper outlines the reasons for this phenomenon and discusses its implications for the role of private renting in England.     

Social Belonging,Social Capital and the Promotion of Home Ownership: A Case Study of Hong Kong

The Hong Kong Government is vigorously promoting home ownership, a major rationale being to increase the community's sense of belonging and reduce the rate of emigration. This paper evaluates whether home owners in Hong Kong have a higher sense of social belonging than renters and finds that tenure status is a spurious independent variable in assessing respondents' sense of belonging to Hong Kong. Logistic regression analysis suggests that the significance of tenure is greatly reduced when other variables, namely age, identity, income and foreign abode right are controlled. The analysis also shows that those possessing a comparatively high sense of social belonging tend to bear the identification of Hong Kong Chinese, be older, have high incomes, and hold no foreign right of abode. Of the control variables, the factor of 'identity' appears most influential. Hong Kong's relationship with China, the uncertain nature of a Hong Kong identity and the territory's economic trajectory as a higher order services economy has meant that housing policy, specifically the promotion of home ownership, is perceived by the government as influencing values and behaviour very narrowly defined as promoting social belonging primarily in a territorial or geographical sense, with wider implications of neighbourhood stability unconsidered.     

Second Home Ownership in Transitional Urban China

China has recently experienced a massive growth in second home ownership. This paper argues that second home ownership in Chinese cities is not only a result of an increasingly mature housing market but, more importantly, an unintended consequence of socialist housing policies and institutions, such as the subsidized sale of public rental housing and associated partial property rights, the continued provision of subsidized housing by work units, the continuing household registration system and the lack of property tax. Using the 2005 China General Social Survey, this paper empirically studies the patterns and dynamics of second home ownership in urban China. While households' socio-economic status contributes to conventional second home ownership, the persisting socialist housing policies and institutions have led to the unique phenomena of owing one home with partial property rights and owning a second home, and renting the primary home even in the public sector and owning a second home.     

Home ownership and rent control in Switzerland

This paper discusses the reasons for two intriguing characteristics of the Swiss housing market: the small demand for owner occupancy in spite of high per capita income and the survival of a viable private rental sector after decades of rent control. The low rate of home ownership seems to be the result of the high cost of owning caused by the taxation of imputed rent and capital gains, and the lack of financial incentives to save for a down payment. The survival of private renting as the dominant housing sector, on the other hand, was made possible by the permissive second‐generation rent control regime which succeeded in maintaining the continuing profitability of private investments in rental housing. The main effects of rent control in Switzerland appear to be the reduction of housing costs of long‐standing tenants and the prevention of abuse through arbitrary eviction and exploitation of temporary shortages.     

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.     

The supply of private rented housing in Canada

Canadian housing policy objectives are generally pursued through a market framework. There is little provision of non-market housing. Thus, while Canada has a substantial private rented sector, it has only a small social rented housing sector. About a third of all dwellings belong to private landlords for market renting and only six percent are owned by public and private landlords for non-profit renting. The supply of dwellings newly constructed specifically for private market rental has fallen over the last 20 years. This fall has been compensated for in part by the supply of existing dwellings that have been transferred from other tenures. There has also been a fall in the proportion of private market rented dwellings owned by corporate landlords and an increase in the proportion owned by small-scale individual landlords, including individuals buying existing dwellings in other tenures to convert to private renting. These recent supply-side changes have been in response to three factors. First, changes to the federal tax system and direct supply incentives have reduced the attractiveness of investing in private renting for corporations but increased it for individuals. Second, the demand for private renting has fallen amongst middle- and high-income households because of demographic and tax changes. This has reduced the numbers of private renting households able to pay the rents needed to make new construction profitable. Third, other public policies have also had an impact on supply, including rent controls imposed by provincial governments and land use planning restrictions and building standards imposed by local authorities. An important feature of the Canadian private rental market is its geographical diversity, with supply-side trends varying in different provinces and urban areas in accordance with variations in demand and local policies. Tony Crook is Professor of Town & Regional Planning and Head of Department at the University of Sheffield. His main current research interest is housing policy, especially the investment decisions of private landlords and housing associations and the relationships between housing policy and land use planning. His research work has been funded by DoE, ESRC and the Joseph Rowntree Foundation. It has been widely published in books and in academic and professional journals. He is currently Chair of the Conference of Heads of Planning Schools. He is also active in the worlds of policy and practice. He is a member of the RTPI Housing and Renewal Panel, trustee of two housing associations, and an independent director of one of the new Local Housing Companies.     

Prosperity or Inequality: Deconstructing the Myth of Home Ownership in Hong Kong

In Hong Kong, the demand for home ownership over the past decade has been phenomenal. Before the economic crisis and the property market slump in 1997/98, house prices in Hong Kong were among the highest in the world. A 'home ownership ethos' was cultivated, in which most people believed that the promotion of home ownership brought prosperity to the economy and benefited individual owners. This paper argues that the existing 'pro-ownership and anti-rental' housing policy does not benefit the economy or many of the lower and middle-income homeowners. On the contrary, it undermines the stability of the economy and widens social inequalities along various dimensions such as class and gender, and between the younger and older generations.     

Opportunities and Constraints in State Housing Policy: The Example of Tasmania's ‘Affordable Housing Strategy’

The lack of Commonwealth government funds for public housing has encouraged state governments across Australia to develop ‘Affordable Housing Strategies’ to address the problems that result from the shortage of housing available for low-income households. However, to date there has been limited discussion of the implications of these affordable housing strategies and their significance as a form of policy intervention. This article highlights the Tasmanian Government's ‘Affordable Housing Strategy’ as a case study to illustrate the obstacles that confront state housing policy makers. These include difficulties in securing partnerships with the private sector, an inability to influence macro-economic policy settings, fluctuations in the property market cycle and a reliance on small and uncertain budgetary allocations. However, there is limited scope to address some of the problems that have undermined previous state and Territory housing policy initiatives by reaching agreements with local government to ease planning controls for social housing, boosting the capacity of the community housing sector and using additional budgets judiciously.     

住宅建设迈向多元化选择

香港的土地与房产价格高居世界前茅，私人开发商的住房租金和售价远远超出普通市民的经济承受能力，香港政府通过向市民提供多元化选择的方式，在解决中，低收入阶层的居住问题上取得了不错的成绩，为内地进行大规模住宅建设及实践住宅市场的商品化提供了借鉴。     

Housing development and policy change: what has changed in Turkey in the last decade in the owner-occupied and rented sectors?

Since 2002, The Justice and Development Party has been governing in Turkey. From their first period to the current, major changes have been observed in the Turkish housing system, regarding both owner occupied and rented sectors. First one is the introduction of Mortgage Law in 2007. As already a home-owner society with a 64.16 % share in urban areas (2003), home ownership ratios can be argued to increase in coming periods. Second modification in owner occupied sector was significant policy change in Housing Development Administration (HDA) of Turkey. With a “housing mobilization” project, almost 500,000 new dwellings were built by HDA all over the country in 10 years. This has been a record in HDA’s history. Remarkable changes occurred in the rented sector as well. Originally, Turkey has been characterized with absence of public renting and considerable proportion of private rented stock especially in the big cities. Governments did not develop social rented housing and pro-owner laws have been followed. Renters could face eviction under certain situations determined by the Law on Property Rents, however these were subject to misuse by homeowners. As a third major change, a new Code of Obligations was introduced superseding Law on Property Rents. In this paper, recent changes in both rented and owner occupied sectors of the Turkish housing system are analyzed with reference to mortgage law, HDA’s new policies and changes in private renting legislation. In doing so, several key figures like buildings produced, inflation rate and physical attributes of private renting are provided.     

Private Renting in a Home-owning Society: Disaster,Diversity or Deviance?

The rise in private renting in home ownership societies has been variously interpreted as increasing risk and insecurity and providing more flexible housing options for an increasingly diverse resident cohort. Drawing on an original survey and in-depth interviews with private renters in two cities in a classic home ownership society (Australia), there is clear support for the “disaster” interpretation in respect of low-income households renting in outer urban areas, with financial stress and insecurity reflecting and compounding disadvantage. For many others, private renting can be interpreted as a “constructive coping” strategy in the context of urban housing market restructuring. A sizeable cohort of private renters explicitly prioritises living in a desired inner/middle city location over owning. One – albeit relatively small group – appears “deviant” from the home ownership norm in associating private renting with greater lifestyle freedom. The paper contributes an understanding that location and lifestyle are of paramount importance to many private renters rather than housing tenure per se.     

Housing Tenure: Pacific Families in New Zealand

Home ownership has been associated with health, social and economic benefits. However, a decline in ownership has been observed over the past decade in New Zealand. Minority groups, including Pacific people, have been disadvantaged in the housing sector. This study investigated housing tenure and the relationship between tenure and health among mothers of a birth cohort of Pacific children in New Zealand. Findings showed that most families lived in state or private rental accommodation with few (15.4 per cent) owning their own homes. Homeowners were more likely to be older, partnered and have higher incomes. Better mental health was observed for homeowners compared to renters. Findings can inform housing and public health policy for Pacific families.     

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.