Developments in the provision of housing finance in the UK

Recommended reading for providers and designers of housing. The results of the housing finance changes in the UK included a wider range of institutions involved, significant developments in the source and delivery of that finance, as well as important changes in government policy opening up social housing to the private finance market, targeting subsidy more directly at particular groups of individuals and introduction of specific supply subsidies to new private rented sector. The considerable unease with certain outcomes is dealt with.     

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.     

Constructivism, individual action and housing finance: An individualist critique of approaches to housing finance

This paper undertakes a critique of mainstream approaches to housing finance within the context of an individualist social theory which is critical of policy constructivism. Policy constructivism is seen as the fallacy whereby those institutions which are created by human actions can be readily re-created by deliberative action. Following Malpass et al. (1993) it discusses two approaches—the applied economic and policy—to housing finance. Whilst being able to suggest some of the differences and the strengths of these two approaches this paper suggests that they share similar theoretical and methodological flaws. The motivations and relationships between individuals and institutions are idealised and thus the models developed within these two approaches fail to appreciate the complexity of the housing process within an extended social order. The paper concludes by suggesting four areas in which housing research is deficient and that these deficiencies may be attended to through an alternative or additional approach placing individual action at its centre.     

Neoliberal abandonment in disability housing provision: a look at England and Chile

Public or ‘social’ housing provision in many nations in the Global North is increasingly being driven by neoliberal strategies that include austerity cuts and market-led privatization. This context raises an important question of how likely the state’s reliance on the private sector can ensure that housing remains available and accessible to more disadvantaged low-income groups. To help answer this question, we draw on a comparative study of social housing provision for disabled people in England and Chile; two pioneers of neoliberal reform in this sector. Using interviews with key stakeholders, our findings reveal that the neoliberal reform strategies being employed have tended to dilute the statutory duties of providing accessible housing and to undermine disabled people’s choices in finding appropriate homes. Such lessons are timely and important in order to remain cognisant of the spaces of neoliberal abandonment that are leaving many people unable to gain access to appropriate housing.     

From regulatory capture to regulated competition: An interest group analysis of the regulation of housing associations in England

This paper suggests a framework in which the key influences on the regulation of social housing providers can be understood. It draws on a wider literature to locate and describe the types of regulation found in the English social housing sector. It develops an approach based on interest group theories which see regulation as “an exercise among groups and between groups and the state” (Francis, 1993, p. 8). The development of the English regulatory regime is examined over time from the perspective of a number of different interest groups. The regime is shown to have been strongly influenced by the interests of the providers themselves, indicating a degree of ‘regulatory capture’. However, this relationship has been increasingly challenged by external pressures and interests and the promotion of competition by government. Special issues arising from the proposed, but as yet unimplemented, introduction of competition from profit distributing companies are discussed.     

The role of the private sector in housing renewal: Lessons from the neighbourhood revitalisation services experiment in England

During the 1980s the British government made a number of attempts to involve the private sector in the administration and financing of housing renewal initiatives in inner city areas. One of the most significant of these was the Neighbourhood Revitalisation Services (NRS) initiative which was based on the Neighborhood Housing Services (NHS) concept developed in the United States. This paper traces the history of housing renewal policy in England leading up to the development of the NRS initiative. It then compares the NHS projects developed in the United States with the English NRS model and discusses the key differences. The performance of both the pilot NRS projects and the expanded programme of government‐funded NRS schemes is then examined in detail with particular emphasis upon the objective of involving private sector organisations in housing renewal. In conclusion the paper discusses the reasons why the NRS initiative failed to meet these objectives including those stemming from the differing housing and financial policy contexts in England and the United States. Ways are also suggested in which attempts to involve the private sector might be more successful in the future.     

The struggle for housing provision in Tanzania: A case of confusing policies

This paper uses secondary sources to examine ambiguities inherent in the socio‐economic and political policies which guide national development plans in Tanzania. These ambiguities have negative impacts on overall development strategies including housing.

The main focus of the paper is on post‐independence socio‐economic policies. These have been divided into three distinct periods, that is, pre‐Amsha, Arusha and post‐Arusha Declaration periods. Policies that were enforced in each period are carefully examined and their direct or indirect impact on national development plans evaluated in terms of housing production. Finally, the paper proposes drastic changes within the government machinery if future development policies are to be more successful.     

Housing quality and the rescue of failed private housing schemes in England: a policy review

The global economic crisis impacted significantly on residential development in the UK, stalling some local projects as private companies encountered financial difficulty. In response, government put in place an array of tools for rescuing private schemes, including supplying the Registered Providers (RPs) of social housing with the means to purchase complete or partially complete private homes. What seemed an ideal solution—the private developer avoids bankruptcy and Registered Providers acquire much needed affordable homes—in reality has been complicated by several factors. Drawing on interviews with key actors in England and on examples of successful and unsuccessful transfers of housing stock from the private to the public sector, this review seeks to identify key impediments to this type of transfer, including the inability of RPs to acquire housing stock that does not adhere to particular ‘quality standards’.     

US fair housing and anti‐discrimination law: An outline and basis for comparison

This article outlines the major US federal legislation, and the case law determining its application, relating to equal access to public and private housing. It highlights certain strengths in the law in its application and in the remedies available as a basis for comparison, principally with the UK experience. While acknowledging that a general overview is an incomplete basis from which to draw conclusions, particularly in the light of significant social differences, the article suggests that the US experience offers a number of pointers to reforms elsewhere, chiefly in respect of the relevance of social impact and access to class action and substantial damages available to victims in housing. At a time of national and social change in Europe, it is pertinent to examine anti‐discrimination provision from a European perspective in the light of the American experience.     

The challenges of land development for housing provision in New Zealand

The land development process in New Zealand is criticised for causing delays in the delivery of adequate housing. These delays upset the demand and supply equilibrium, leading to housing shortages, expensive builds and rentals. This study investigates the challenges in land development, to ascertain the factors that are limiting its efficiency as a major catalyst to housing provision. An understanding of the complexities of the development process could enable the suggestion of feasible solutions for achieving housing goals. A two-stage process was adopted to achieve this study objective. In stage one, a critical review of relevant literature helped to identify 48 measurement items. Those items were included in a questionnaire survey in the second stage, to gather data from stakeholders involved in land development process in New Zealand. Using relative importance index (RII) method, nine significant challenges were identified, which were then categorised and discussed in accordance with the construction stakeholder groups that are responsible for creating those challenges. The nine major challenges are: delay in reviews and approval of documents; scope change; lengthy consent application processes; late response to queries by regulatory authorities; poor interaction between regulatory authorities; poor coordination within regulatory authorities; poor planning and scheduling; design errors and slow progress during design development. Findings of this study highlight the need for the development of proper workplan for consent processing, reasonable factoring of the risks associated with scope changes in the land development process, and the enhancement of project management skills of land development contractors.

     

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.     

The resurgence of public housing provision in China: the Chongqing programme

Under Chinese neoliberalisation, restructuring of interactions between the market, the state and local governments has encouraged the latter to suppress public housing provision, resulting in serious housing problems for Chinese low-to-middle income households. Since 2007, the state has pursued a public housing revival, laying out various responsibilities for local governments to develop public housing. However, until recently, confronted with significant shortfalls in fiscal and land inputs, local authorities were largely unable to activate construction on an adequate scale. Nonetheless, between 2011 and 2013, the city of Chongqing applied a mode to supply public rental housing on a massive scale. This paper examines the administrative structure and reforms that have ensured the execution of the Chongqing programme. Findings show that specific political and economic incentives of the local officials have played important roles for realising the programme. Moreover, the municipality’s control of land supply and the market have also enabled an efficient cooperation between governmental and market actors for public housing provision.     

In search of profit: housing association investment in private rental housing

The traditional mission of housing associations in England is to provide non-profit housing let at sub-market rents to low-income and disadvantaged households. And yet in recent years, large ‘property developer housing associations’ have begun to invest in for-profit private rental homes let at market rents. Despite long waiting lists for their accommodation, these housing associations are mainly letting their for-profit rental homes to middle-income tenants rather than their traditional low-income clientele. Drawing on a ‘historical institutional’ conceptual framework, and combining structural and ‘agency’ explanations, this paper explores the reasons for this new trend. It argues that investment by large developer housing associations in for-profit and more upmarket rental homes will become increasingly important relative to their non-profit social housing. Over time, this ‘partial recalibration’ of their landlord role is likely to gradually transform the institutional rules, everyday practices and norms that shape their behaviour.     

Measuring the performance of social housing organisations in England and The Netherlands: A policy review and research agenda

Market principles are now a keyfeature of many social housing systems in Europe,and are a product of international public sectormanagement reforms. These reforms have led to thedevelopment and use of performance indicators. Dutchand English housing associations use what appear tobe very similar performance measures. This paper,however, illustrates that there are fundamentaldifferences in their use and their capacity toexplain the performance of the sector. This isargued to be a product of the extent of publicmanagement reform, the nature of the funding regimeand the way they are held to account.     

Development niches and specialist housebuilders: An overview of private sheltered housing in Britain

This paper considers the extent to which the provision of sheltered housing for sale has created a new and buoyant market niche for housebuilders during the 1980s. Focusing on the rapid growth in the numbers of elderly home owners, the increasing equity value of their existing homes and improved savings and pensions arrangements, the market has been targeted at a group of relatively affluent and independent elderly. Sophisticated targeting and marketing of such developments has become the prerogative of specialist divisions of major housebuilding companies, and a number of companies exclusively concerned with the retirement homes market, with McCarthy and Stone and Anglia Secure Homes providing the empirical base for the current paper. After considering the growth and maturing of the retirement homes market, the paper concludes with some speculation on the sustainability of this market niche, within the context of current recessionary processes in the wider housing market.     

Hybridity in the housing sector: examining impacts on social and private rented sector tenants in Scotland

Abstract

Housing Associations in many countries exhibit increasing levels of ‘hybridity’, as reductions in state financing for social housing, exacerbated by austerity policies since the 2008 crash, have instigated ‘enterprising’ approaches to maintaining income. Alongside this, hybrid organisations have emerged in the Private Rented Sector (PRS), responding to sectoral growth and consequent increases in vulnerable households entering private renting. These developing hybridities have been considered at a strategic level, but there has been little exploration of the impacts on tenants. This article examines two organisations, operating across the social and private rented sectors, to elucidate potential implications for tenants. The research suggests that different forms of hybridity can affect tenant outcomes and, moreover, that examining such impacts is important in understanding hybridity itself. Furthermore, the study suggests that emerging forms of hybridity, particularly in the PRS, may be blurring the boundaries between housing sectors, with implications for policy and research.     

The future for private rental housing: Surviving niches or flexible markets?

Private rental housing has had a mixed experience of growth and decline across the advanced economies over the postwar period. Patterns of the tenuer’s significance have been driven by policy rather than economic growth and public housing provision, home-ownership subsidies and inflation have been as significant as rent controls. Sectors now comprise well-defined segments or niches and there are both commonalities and contrasts in units provided, ownership and occupancy. A more stable macroeconomic environment and the mobility and fiscal stringency consequences of global competition appear to facilitate a more expanded role for the sector which also requires scrutiny in relation to the housing requirements for successful European Monetary Union.     

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.     

The role of sentiment in housing market with credit-led funding: the case of Turkey

Journal of Housing and the Built Environment - This paper investigates the long run relationship among sentiment, which is defined as the aggregate investor attitude, housing credit and prices, and...