Evaluating Policy Towards Increasing Owner Occupation

This paper reviews the evidence of the impacts of policy designed to increase rates of owner occupation in Britain, primarily the Right to Buy (RTB) and Low Cost Home Ownership (LCHO) initiatives. It argues that the RTB policy has been a success in its own terms, and explores the wider, unanticipated ramifications of that success. LCHO schemes have been less significant in scale and scope, although arguably some of the features of the scheme are more attractive. Looking forward, there are clear arguments for reforming the RTB.     

The limits of housing policy: Home ownership in Australia

This paper provides an overview of the history of owner occupation rates and policies in Australia, starting from the first Commonwealth census in 1911 and continuing to the most recent in 1991, with particular emphasis on the recent past. The ownership rate grew by only a few percentage points between the 1911 and 1947 censuses, but then increased rapidly from 53 per cent in 1947 to 70 per cent in 1961. However, in spite of extensive promotion of home ownership by the Commonwealth and state governments, ownership rates in Australia have been more or less stable ever since. In a re‐interpretation of Australia's experience with owner occupation, we argue that economic and demographic circumstances are much more important than previous policy‐oriented accounts have allowed.     

Owner Occupation,Employment and Welfare: The Impact of Changing Relationshipson Sustainable Home Ownership

This paper is concerned with the changing relationships between owner occupation,employmentand welfare that increasingly present a challenge to sustainable home ownership. While the discussion centres on the emerging position in Britain, the potential significance of the issues for a number of other countries is noted. The paper first identifies the conditions for sustainable owner occupation and then traces out the impact of three illustrative aspects of labour market change on sustainability. The three issues discussed are the growth of job instabilities,the rising incidence of unemployment and the growth of low paid employment.The extent to which the impact of the changing relationship between the housing and the labour market is already visible will be discussed-potentialindicators include deterioratingphysical conditions, changing attitudes to home ownership and financial difficulties, mortgage arrears and possessions. The latter form the focus for the discussion. This is set in the context of the changing pattern of safety net provision and the limiting of state welfare provision. Recent evidence questioning the likely success of the proposal to ensure the sustainability of owner occupation via the development of a private safety net will be presented.     

After Housing Policy: Housing and the UK General Election 2001

This paper describes the results of a review of the housing content of UK General Election 2001 manifestos. Housing policy was of little importance during the election campaign. The main British political parties had, essentially, a shared housing agenda--to promote and facilitate home ownership, support area and community regeneration, tackle homelessness, improve the private rented sector, and prevent building on greenfield sites. Many issues of importance to housing specialists received little or no attention, most notably that of low demand. Some policy variations within the UK were evident, for example in attitudes towards greenfield development, home ownership and stock transfer. The paper concludes that differences in housing policy are emerging within the UK as part of a new politics of devolution and that the days of a single housing policy approach for the UK are over.     

Private Rental Housing in Hong Kong

This paper examines selected aspects of housing policy and its influence on private rental housing in Hong Kong. Its ambitions are modest, in part because so little research has been conducted on the sector, as a consequence of the small size of the sector as well as the concentration of socio-political, economic and policy analyses on the other major housing sectors, namely public renting and home ownership. It is argued that a fundamental function of private renting, to provide a functional substitute and counter-balance to distortions in the market for private home ownership, has been systematically undermined in Hong Kong. In spite of its historical importance in meeting Hong Kong people's housing needs, the sector's decline has been steep and it can now be fairly described as a marginalised tenure, despite incomplete structural adjustment post- Asian Financial Crisis. It is suggested that a fundamental reason for the decline of the private rental sector has been the impact of government policy, which undermined the private rental sector and thus an important element of the market mechanism in housing provision. The government's ideology of home ownership has also functioned to transfer lower middle-income families into the owner occupied sector. Although the Hong Kong government has not been as overtly hostile to this sector as governments have been elsewhere, it nevertheless also seems to envisage no real role for the private rental sector in a housing delivery system molded by policy preference for home ownership, rather than fostering viable economic competition by also facilitating an efficient private rental sector.     

“Thank heavens for the lease”: histories of shared ownership

Drawing on and developing Kingdon’s multiple streams analysis, this article examines the development of one aspect of the UK’s low cost home ownership programme: shared ownership. We demonstrate how key human and non-human policy entrepreneurs were able to set the agenda from 1973–1983 in favour of shared ownership; they neutralized the alternatives, while retaining some of their instruments; and solved a number of early problems by bringing key players into the programme. Our data-sets include a range of archival material and elite interviews. The policy entrepreneurs included John Stanley (who was the housing minister in the First Thatcher government), the National Federation of Housing Associations, and the Building Societies Association. Our development of the multiple streams analysis is to argue that documents, including the lease, act as policy entrepreneurs in their own right. The lease was central to the development of shared ownership and its transformation into a model lease enrolled other organizations, most critically the building societies.     

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.     

The changing determinants of inter‐racial home ownership disparities: New York City in the 1990s

The 1990s witnessed significant changes in home ownership policy that were designed to reduce disparities in home ownership rates between whites and non‐whites. The study finds evidence that the policies were, indeed, effective in reducing home ownership disparities between whites and non‐whites. In this study data from the New York City Housing and Vacancy Survey (NYCHVS) are used to examine ethnic/racial home ownership rate disparities. Decompositions are performed to determine the component of home ownership rate differentials due to ethnic/racial group characteristics versus ability to translate those characteristics into home ownership. Presumably, a shift in public policy to be more ethnically and racially inclusive should reflect a change in home ownership rate disparities and, more particularly, a change in the component of those disparities attributed to differential ability to translate group characteristics into home ownership rates. Hence, this study addresses the success of recent policies to foster the opportunity of achieving the ‘American dream’ for non‐white families.     

Public utility ownership and in-kind trade policy in vertically related markets

This analysis examines the optimal government ownership level of an upstream public utility when considering an import tariff and a production subsidy. It analyzes a simple two-country model in which a home public and a foreign private utility firm in the upstream market supply their produced inputs exclusively to compatriot downstream firms that compete in the home country's final good market. The paper shows various conditions for determining the optimal level of government public utility ownership and the role of that ownership. If the import tariff and production subsidy are sufficiently small (or large), then the optimal government ownership policy will likely be complete (or partial) nationalization, and the ownership of the home public utility works as an in-kind subsidy to (or tax on) the home downstream firm. The analysis also examines a case where the home downstream firm monopolizes the market. It shows that the optimal policy is the complete nationalization of the upstream public utility. The World Trade Organization (WTO) limits the direct use of tariffs and subsidies as a strategic trade policy tool. Under such a situation, this paper suggests that government ownership of a public utility can be used as an in-kind trade policy tool, and privatizing without considering this role of public utilities may neglect a potentially useful trade policy channel.     

The potential and implications of home equity release in old age

Studies of the implications of wealth accumulation through owner occupation have begun to focus on the inheritance of housing wealth. This paper suggests that such studies give too little emphasis to the consumption of home equity by older people. To date, the use of home equity has been relatively insignificant but this reflects the limitations of existing equity release mechanisms rather than a lack of underlying demand. The scale of equity held by older people, the potential for new mechanisms, and survey evidence relating to the attitudes of older people themselves are examined in detail. In the context of declining standards of state provision of many services many older people may choose or be forced to make use of their wealth to meet a variety of needs. This not only requires a reappraisal of the role of home ownership in providing for old age but also raises major questions in relation to standards of provision for those without access to such wealth.     

Home ownership,foreclosure and compulsory auction in the Federal Republic of Germany

This paper outlines the financial difficulties which home owners in the Federal Republic of Germany (FRG) have been experiencing over the 1980s. The discussion is preceded by a brief outline of the housing market for owner‐occupied dwellings. The paper then outlines the scale of the problem of home owners in financial difficulties and refers to house prices, housing finance and state subsidies. The extent to which the growth of home ownership has brought owner‐occupation within the reach of middle and lower income households, and the particular conditions of the housing market which affect those home owners who run into financial difficulties are considered. Reference is also made to research which has been carried out into the particular plight of households threatened with compulsory auction proceedings. In the conclusion possibilities for reform of housing finance arrangements and compulsory auction proceedings are outlined.     

Meanings of home for older home owners

The meaning of home has been the subject of much recent debate. The paper explores this debate and uses empirical data from New Zealand to demonstrate that the meaning of home reflects specific sets of historical and social circumstances and is multi‐dimensional. Key features include home as a cultural value, the investment potential of home and the impacts of gender on the meanings attached to home and home life. The paper explores the meanings of home amongst a group of older New Zealanders interviewed towards the end of 1993 and in early 1994, a time of considerable upheaval within state policy with respect to the elderly. For this group ‘home’ was synonymous with home ownership and reflected deeply held concerns with respect to security, family and continuity. These same concerns it is argued gave rise to the specific pattern of housing tenure, predominantly owner occupation, that developed within New Zealand. Out of these concerns for security and family continuity comes a focus upon bequeathing amongst the older home owners as they consider the passing on of their accumulated assets and other markers of family to the next generation. Changing patterns of family form and the growth of a more individualistic culture, as a result of social and economic restructuring, are expected to profoundly modify the meanings of home held by New Zealanders and lead to increasingly marked intergenerational differences in both the meanings attached to ‘home’ and the importance of inheritance.     

Mortgage possession

Despite the recent growth in mortgage possession there has been little research on the characteristics of those losing their property or the form and meaning of the possession process. This paper examines: the conceptualisation and measurement of possession; who is at risk and of what type of possession; the factors associated with different routes out of owner occupation and the impact of possession on borrowers both financially and in terms of attitudes to home ownership. The paper suggests that there may be a significant incidence of voluntary possession and young home owners with high loan: value ratios, high monthly payments and additional borrowing are especially vulnerable.     

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.     

Editorial

Despite the growth of domestic and international markets in second homes, there has been relatively little research on this issue in the Australian context. Yet several features of this context present interesting ways of extending the debates about second home ownership that have characterised social and policy discussions to date in the UK and Europe. In this paper we consider the overall extent, regional distribution and broader impacts of a form of second home ownership that has risen rapidly and which is facilitated by a range of fiscal and macro-economic settings. We present the results of two national surveys that asked about the ownership of holiday homes and which reveal extensive ownership across a range of social groups. We then move to a discussion of a case study in the island state of Tasmania and to the growing commodification of its holiday ‘shack’ market to add depth to discussions about the localised ramifications of second home ownership. We conclude by discussing our results in the context of the international literature and by considering the public policy issues that our data raise.     

Property Owning and Democracy-Do the Twain Ever Meet?

Starting from the Conservative assertion that home ownership fosters politically active and virtuous citizens, this paper examines two lines of argument in housing theory; (a) Jim Kemeny's thesis that owner occupation is closely linked to increasing privatism, i.e. a growth in lifestyles centred around the home and privacy rather than the workplace or the public affairs in a society, and (b) Peter Saunders' thesis that home owners will organise and mobilise politically in defence of their property interests if and when various government agencies threaten to remove their tax subsidies. To test these propositions empirically, data on the effects of the rapid and comprehensive dismantling of tax privileges to Swedish home owners in the 1980s and early 1990s are confronted with data on political interest, participation and knowledge as well as civic trust and responsibility from the Swedish election surveys of 1979, 1985 and 1991. Contrary to Conservative beliefs, home owners do not stand out as 'democratic examples'; with the exception of political knowledge and party membership, they are no more 'civil' or 'democratic' than other citizens. There is also not much to support Kemeny's 'privatism' or Saunders' 'reaction-to-threat' theses. Although home owners in Sweden saw their tax privileges diminishing rapidly during the 1980s and early 1990s, they do not show the distinctive patterns of change in democratic orientation and spirit predicted by these two housing theorists. To allow for an even more conclusive test of Kemeny's 'privatism' thesis, however, one must overcome the mismatch of income definitions in housing statistics and election survey data.     

Meeting housing needs through the market: An assessment of housing policies and the supply/demand balance in France and Great Britain

In both Britain and France, for the last 15 years or so, housing policy has become more market‐orientated. This paper examines what this has meant for the balance between supply and demand and for progress in meeting housing needs. Current projections for how housing needs and the demand/supply balance will develop in the 1990s are also analysed. For each country, the determinants of housing demand, both demographic and economic, and the supply position in both the private and public sectors, are examined. Several common issues are identified: the existence of unmet housing needs, problems of indebtedness, the limits to the expansion of owner occupation, problems of social housing finance, and concerns about the decline of the private rented sector. There are also important differences between the two countries: housing output remains at a higher level in France than in Britain; deregulation of housing finance has gone further in Britain than in France; and in France there remains a greater recognition by government that housing is a national responsibility. But in both countries, the ‘marketisation’ of housing policy has meant that housing outcomes have become more dependent on factors external to the housing system.     

Austerity and reform to affordable housing policy

The recession has created significant challenges for the government with regard to providing affordable housing. Even during the UK’s housing boom the supply of housing failed to keep pace with demand. Therefore, increasing housing supply and improving affordability in a recessionary period will require the government to innovatively utilise their limited resources. Following the Comprehensive Spending Review in 2010 severe cuts to the housing budget were made and radical reforms to housing and planning policy have been proposed by the coalition government. The paper briefly discusses the UK housing market and affordable housing policy and practice recently employed in England. Subsequently a discussion of the coalition government’s recent reforms to housing and planning policy, concerning affordable housing, is presented.     

Falling out of the home owner market

By and large the tenure change literature has focused on the shift from renting to owning. The converse process, the move from ownership to renting, has received less attention. In this paper we provide a context for examining who ‘drops out’ of the home owner market. The results show that families with children are less likely to be able to remain in the home owner market than couples and, conversely, that two income earners are more likely to be able to stay in the market or buy another dwelling after a spell in renting than a one income earner. Although those results are somewhat expected, we provide additional new information on the nature of temporary moves out of the home owner market and returns at a later time, and on the seemingly greater role of accidental effects on exit from the home owner market than entrance into that market.     

Home ownership policy in Singapore: An assessment

Since independence in 1965, housing conditions in the city‐state of Singapore, with a population of 2.6 million in 1988, have improved considerably. Much of the credit for this must be attributed to the government's policy of building homes for the lower income groups. One objective of the housing policy is 100 per cent home ownership for public housing. In pursuing this policy the political and social aspects are often emphasised. This paper attempts an economic evaluation of the 100 per cent home ownership target. It examines the demand and supply side policies that are employed to achieve the target. In analysing the economic implications of the policy, it is observed that such a policy distorts household expenditure, leads to overconsumption of housing and results in a thinner rental market and constrains tenure choice. These economic losses need to be recognised even while accepting the political and social importance of the policy.