Asset-based Welfare,Equity Release and the Meaning of the Owned Home

The advantages of ownership—both financial and personal—were a prominent theme in UK government policies promoting owner-occupation in the latter half of the twentieth century. More recently, the liberal discourses of the ‘ownership society’ have been conflated with the neo-liberalisation of welfare to restructure the socio-political ideology of ownership around accumulation and decumulation of housing wealth. This paper analyses findings from a new qualitative study to explore the tensions that this shift has created for owner-identities. Equity release transactions provide a prime context to explore the role of homeownership ideologies on participation in asset-based welfare: these are conceived as products that enable older owners to de-cumulate housing equity while continuing to occupy their homes and retaining the ‘badge’ of ownership. This paper focuses on the impact of housing wealth decumulation through equity release on the meanings of the owned home and to reflect on the role of feelings about ownership on participation in asset-based welfare.     

Young People,Homeownership and Future Welfare

Homeownership has become a ‘normalised’ tenure of choice in many advanced economies, with housing playing a pivotal role in shifts from collective to asset-based welfare. Young people are, however, increasingly being excluded from accessing the housing ladder. Many are remaining in the parental home for longer, and even when ready to ‘fly the nest’ face significant challenges in accessing mortgage finance. This under-30 age group has become ‘generation rent’. As this policy review emphasises, this key public-policy issue has created a source of inter-generational conflict between ‘housing poor’ young people and their ‘housing rich’ elders. To fully understand the complexities at play however, this paper argues that we need to look beyond the immediate housing-market issues and consider how housing policy interacts with broader social, economic and demographic shifts, and how it is intimately connected to debates about welfare. This is illustrated with reference to the UK, although these debates have international resonance.     

Comparing Homeowner Societies: Can we Construct an East-West Model?

Distinguishable patterns of mass homeownership have emerged across industrialised societies in recent decades, and have become increasingly central in comparative analyses of housing systems. This paper examines the nature of differences and similarities within and between two particular groups of societies where owner occupation dominates housing demand and policy systems, one constituted of English-speaking, Anglo-Saxon societies, and another of East Asian societies. The paper considers the potential of forming loose models based on core divergences in terms of systems, regimes and socio-ideological relationships. The aim is to further illustrate interactions between housing systems and welfare regimes in international contexts. Comparisons of housing and welfare elements are broadly related between societies, rather than quantitatively isolated, as systems are substantially variegated across the East Asian region. However, a loose system-model provides considerable insight into convergence within the group in regards to how housing systems have served a minimal social-welfare regime type.     

Home ownership as a (crumbling) fourth pillar of social insurance in Australia

Australia is seen as being at the forefront of shifts to an explicit asset-based policy in its approach to maintaining post-retirement living standards, having initiated a move away from an unfunded retirement income system to a universal, funded system in the early 1990s. This move supplemented a considerable implicit asset-based policy based on home ownership. This paper examines the potential that asset-based welfare has to protect households from poverty after retirement by focusing on the role of home ownership in preventing poverty among older Australians and on likely future trends in asset accumulation. It suggests that, although asset-based welfare has the potential to ease the fiscal constraints faced by the state, it may well lead to poorer social insurance outcomes for households with limited saving capacity over their lifetime. Older households who miss out on home ownership are shown to be multiply disadvantaged: they have lower non-housing wealth, lower disposable incomes and higher housing costs in retirement than homeowners and they have significantly higher after-housing poverty rates. Projections suggest that this group will grow in size in the coming decades. These outcomes suggest that Australia’s asset-based welfare system is crumbling.     

The Everyman archetype: discursive reframing of private landlords in the financialization of rental housing

Abstract

This article investigates the politico-cultural processes underpinning the financialization of private rental housing. Exploring the case of Australia, it shows how debt-financed landlords have been discursively reframed as ‘mum and dad investors’ who are valorized politically as enterprising, self-reliant and providing essential housing. This article then critically appraises this depiction based on available secondary data, and finds that protagonists are, predominantly, midlife and older households with higher household incomes and higher wealth levels. Furthermore, deployment of an Everyman archetype is a politico-cultural device for normalizing this type of activity as part of the financialization of everyday life. Discursive reframing bolsters political and public support for investor-landlordism as an important contributor to asset-based welfare.     

Homeowner investor subjects as providers of family care and assistance

Abstract

This article asks: What becomes of the idealized asset-accumulating investor subject rallied in asset-based welfare policy and discourse in the context of mounting social risks facing families? It brings into dialogue two disconnected literatures: one on financialized subjectivities, drawing on post-structuralist and Foucauldian analysis, the other on welfare states drawing more heavily on comparative political economy. Drawing on homeowner interviews in Melbourne (Australia), it identifies how parent homeowners’ devise housing strategies to manage their children’s housing welfare risks. Their housing investment and landlordism strategies align with financialized subjectivities, but other strategies subvert or reject these subject positions. Its first contribution is to specify how an Australian refamilization of welfare responsibilities, including for housing, is unfolding as processes of financialization erode the efficacy of growing state social spending. Its second contribution is to challenge the individual subject of asset-based welfare (ABW) and introduce intergenerational assistance as an under-explored contingency for ABW projects, and further driver for welfare inequalities between and within generations.     

Housing Policy as a Lever for Change? The Politics of Welfare,Assets and Tenure

The housing tenure structure has long been associated with different forms of welfare state capitalism in Western Europe. However, with the rise of owner-occupancy, this association has not been so straightforward. An alternative view is to view housing policies that promote owner-occupancy for households to acquire assets, as an attempt by the state to reform social welfare systems. The politics of welfare reform are related to the discourses of homeownership ideology. The ownership of (housing) assets agenda serves as a means to change the relationship between state, market and individual households. This view is mostly based on the British experience and this paper seeks to broaden it by examining the Netherlands and Spain. The paper shows differences, but also that housing policies play an important role in driving towards or maintaining market-dominated solutions. Housing is used to either reorient towards or maintain a welfare system where asset ownership and market dependency is deemed more appropriate than secure income and public expenditure.     

Exploring ‘Housing Asset-based Welfare’. Can the UK be Held Up as an Example for Europe?

In the UK, homeownership has become increasingly important as a financial asset used for welfare needs, particularly during old age. It has been suggested that other European countries will follow the example of the UK. Traditionally, homeownership has been regarded positively because of the low housing expenses associated with outright ownership and the financial benefit of having a nest-egg that can be released, if needed, by selling. New mortgage equity release products reduce liquidity constraints and are regarded as promising in the context of changing welfare states. This research focuses on household strategies. It finds that housing assets play a role in households' financial planning in all countries within the study, particularly where welfare levels are low or decreasing. Homeownership was used in the traditional way in all countries, but it is only in the UK that households have adopted mortgage equity release products to cash in their housing equity for welfare needs.     

Property-based welfare and European homeowners: how would housing perform as a pension?

Notwithstanding current market volatility, there has been exceptional expansion in owner-occupied housing sectors and increases in house prices across European countries in recent decades. In the EU, individual wealth held in housing equity, especially among older people, has been considered a substantial reserve that could be tapped into to meet future pension needs as the ageing of the population becomes a greater stress on European welfare states. This paper seeks to take the notion of ‘property-based welfare’ further by examining, in principle at least, how home ownership may function as a pension across EU states. This firstly involves very approximate estimates of the types of, and rates of, income homeowners could hypothetically generate from their homes, including forms of income in kind. Secondly, criteria are identified to estimate how ‘adequate’ such potential incomes are in relation to working incomes and in bringing retired households above poverty levels. Thirdly, different circumstances across EU member states with regard to existing housing and pension arrangements are examined. Broad national groupings appear evident, with housing income having least impact in older member states in central and northern Europe. The paper concludes that while the potential outcome of housing wealth is country specific, in many cases, greater dependency on home ownership in welfare provision, particularly if it is used as a substitute rather than a complement to existing arrangements, may have adverse consequences for many.     

Housing careers,intergenerational support and family relations

Abstract

The home and family have always been mutually embedded, with the former central to the realization and reproduction of the latter. More recently, this mutuality has taken on a more critical salience as realignments in housing markets, employment and welfare states in many countries have worked together to undermine housing access for new households. In this context, families have become increasingly involved in smoothening the routes of young adults members up the ‘housing ladder’ into home ownership. Intergenerational support appears to have become much more widespread and not just confined to familialistic welfare regimes. The role of intergenerational support for housing remains, however, highly differentiated across countries, cities and regions, as well as uneven between social and income classes. This introduction to the Special Issue explores how the role of housing wealth transfers has impacted the renegotiation of the generational contract. In doing so, it sets the scene for the articles that follow, each of which contribute significantly to advancing understanding of housing as a key driver of contemporary social relations and inequalities.     

The role of home ownership in Japan’s aged society

In postwar Japan, a housing system focused upon promoting residential-property ownership has been embedded in the wider context of providing welfare. However, Japan’s home-ownership-oriented society has been progressively challenged by growing inequalities both between and within generations, and aggravated by intensive societal aging. Since the 1990s, a more volatile and uncertain economy has made it more difficult for younger cohorts to access home ownership, which has undermined traditional mechanisms for maintaining the ‘home-owning society’. Within older cohorts, economic conditions relating to home ownership have become noticeably differentiated, leading to considerable stratification among elderly people. While residential-property ownership has been a cornerstone of Japan’s welfare system, it has also driven an aggravation of socioeconomic inequalities. The focus of this paper is the assessment of sustainability of the home-ownership-based welfare approach in Japan with particular reference to inter- and intra-generational inequalities. Empirical evidence was obtained by re-calculating the micro-data from the National Survey of Family Income and Expenditure as well as other statistical sources.     

Long-Run Trends in Victorian Housing Affordability and First Transition into Homeownership

Over the past two decades housing pathways have become increasingly differentiated between generations, particularly in advanced societies dominated by owner-occupied tenure systems. Demographic transformations caused by aging and falling fertility rates, along with a more volatile economy and a neo-liberal reorientation of governance have combined to restructure housing conditions. Drawing on empirical research in Japan, this paper illustrates the social origins and impact of generation-based differentiations in housing patterns in that country. It considers the housing experiences of three cohorts: baby-boomers, baby-busters and the ‘lost generation’. The contrast of housing pathways between these generations in Japan illustrates the contemporary dynamics of housing and social processes in homeowner societies.     

Home-Ownership and Pensions: Negative Correlation,but No Trade-off

This paper qualifies the role of home-ownership as an income complement for the elderly by taking the institutional context into account. We argue that a strategy of asset-based welfare focused on the promotion of home-ownership is not universally applicable, but depends on how housing and pension provision are organised. Based on the extent of commodification in housing and pensions, we distinguish four types of institutional contexts. We argue that, since relying on housing wealth as a pension essentially boils down to a market-based approach to welfare provision, this strategy is more likely to occur when both housing and pensions are largely commodified, which is only the case in the liberal welfare states. The conclusion of a trade-off between the rate of home-ownership and spending on pensions often referred to in prior work is unlikely to hold universally when differences between housing and pension provision across contexts are taken into account.     

From Asset Based Welfare to Welfare Housing? The Changing Function of Social Housing in Ireland

This paper examines a distinctive and significant aspect of social housing in Ireland—its change in function from an asset-based role in welfare support to a more standard model of welfare housing. It outlines the nationalist and agrarian drivers which expanded the initial role of social housing beyond the goal of improving housing conditions for the poor towards the goal of extending homeownership, and assesses whether this focus made it more similar to the ‘asset based welfare’ approach to housing found in South-East Asia than to social housing in Western Europe. From the mid-1980s, the role of Irish social housing changed as the sector contracted and evolved towards the model of welfare housing now found in many other Western countries. Policy makers have struggled to address the implications of this transition and vestiges of social housing's traditional function are still evident, consequently the boundaries between social housing, private renting and homeownership in Ireland have grown increasingly nebulous.     

Repackaging the poor? Conceptualising neoliberal reforms of social rental housing

This paper considers the need for conceptual renewal in comparative housing research. Since the mid-1990s, Kemeny’s model of ‘unitary’ and ‘dualist’ rental markets and Harloe’s classification of ‘mass’ and ‘residual’ social housing provision have been repeatedly recycled in comparative studies of ‘social’ and ‘public’ housing provision. Amidst international neoliberal policy mobilities, their models based on liberal welfare regimes wield particular power. Conceived during neoliberal cutbacks of public services, Kemeny’s ‘dualist’ rental market and Harloe’s ‘residual’ model of social housing similarly depict state-subsidised rental housing provision as bureaucratic, and targeted to the poor. Despite empirical change, these models are still used to describe liberal welfare regimes, and to theorise international policy convergence. Based on a review of recent market-oriented reforms of state-subsidised rental housing provision in the US, Australia and England; original neoliberal ‘sites of production’, this contribution asks whether these conceptual models still reflect the empirics. Findings diverge from the models, undermining their assumptions about how neoliberal reforms progress.     

The changing role of housing assets in post-socialist countries

The paper discusses the ways and the extent to which home ownership in post-socialist societies represents a potential to serve as an additional source of welfare. First, the specific institutional context is observed, highlighting how during transition collectivist forms of welfare and housing provision gave way to more individualised risks coverage, thus strengthening the role of wealth and establishing home ownership on a massive scale. Secondly, the actual possibilities of home ownership to serve as a latent wealth reservoir are observed. To highlight the capacities and limitations of home ownership to sustain, store and release wealth, selected characteristics of households and of their housing are empirically examined by using data from EQLS. A relatively high incidence of unfit housing and of economic hardship and deprivation were found among homeowners, indicating their very limited capacity to store and sustain the wealth contained in their housing. This is particularly pronounced in comparison to West Europe. However, significant diversity was found also among post-socialist countries, as distinguished in three sub-groups; in the Central East European sub-group, the limitations were found distinctively less frequently.     

Becoming a landlord: strategies of property-based welfare in the private rental sector in Great Britain

Ongoing neoliberal policies have realigned the links between housing and welfare, positioning residential property investment – commonly through homeownership and exceptionally also through landlordism – at the core of households’ asset-building strategies. Nonetheless, the private rented sector (PRS) has been commonly portrayed as a tenure option for tenants rather than a welfare strategy for landlords. Drawing on qualitative interviews with landlords across Great Britain, we explore landlords’ different motivations in engaging in landlordism; and the ways in which their property-based welfare strategies are shaped by the particular intersection of individual socioeconomic and life-course circumstances, and the broader socioeconomic and financial environment. By employing a constructionist grounded approach to research, our study contributes to a more nuanced understanding of the different ways that asset-based welfare strategies operate within the PRS. We draw attention to an understudied nexus between homeownership and landlordism which we argue represents a promising route for future research.     

Gendering the right to housing in the city: Homeless female lone parents in post-Olympics,austerity East London

This paper assesses how gender, housing, austerity and the right to the city inter-relate with reference to female lone parents from East London, the site of the 2012 Olympic Games. In so doing, the paper draws upon qualitative research undertaken with lone parent mothers living in temporary accommodation. The women's housing experiences are embedded within a deepening of neoliberal welfare cutbacks and restructuring under what Peck (2012) has called ‘austerity urbanism’. Although the mother's lives are based in East London where they have extended family and where many of them grew up, they have either been moved, or face the prospect of being moved, out of the area and even beyond the city limits into suburban South East England. Rather than basking in the much trumpeted 2012 Games regeneration ‘legacy’, these women's right to live in East London, close to their support networks, is being eroded.     

Homeownership,Asset-based Welfare and the Neighbourhood Segregation of Wealth

The asset-based welfare approach, which has foremost encouraged homeownership, has led to rising homeownership rates, house prices and household debt levels. While this shift has helped raise the net worth of some among the middle and working classes who own property, the implications for the spatial distribution of wealth in cities have not yet been explored. This paper examines the spatial implications of the rise of policies promoting asset-based welfare, by examining statistically how variables related to homeownership rates and housing prices relate to measures of urban wealth segregation among neighbourhoods. Canadian cites are used as the main case study for the empirical analysis. The findings suggest that while homeownership in general has an equalizing effect, rising rates of homeownership (and to some extent, rising house prices) are associated not with greater spatial equalization and dispersal of wealth, but instead with greater spatial segregation and concentration of wealth within cities.     

Promoting home ownership in a social‐rented city: policies,practices and pitfalls

Amsterdam's housing market is dominated by the social‐rented sector. It comprises 56 per cent of the total housing stock, while home ownership comprises only 19 per cent, lower than anywhere else in the Netherlands, and among the lowest in the world. Central government policy is currently seeking to increase the share of home ownership in the Netherlands from 53 per cent (2001) to 65 per cent in 2010. This paper will summarise recent national and local (Amsterdam) housing policy developments, focusing on the recent practice of selling social housing in Amsterdam. Unlike the Right to Buy scheme in Britain, the Netherlands employs an ‘offer to buy’ strategy. Sales, however, have been disappointing so far. Two factors were found to be crucial in this regard: (1) the sluggish change in ‘policy mentality’ and bureaucracy and (2) the high prices in the home ownership market. By way of conclusion, the paper reflects on the desirability of shifting the tenure structure from tenancy to ownership and on the risks that an (over‐) emphasis on home ownership may bring.