The present and future of income‐related housing support: debates in Britain and the Netherlands

This paper examines income‐related housing support in Britain and the Netherlands. It considers the main issues that are at stake in current policy discussions, compares the arguments that are put forward in the two countries and draw conclusions about the future of income‐related housing support. In both Britain and the Netherlands political discussions about the possible introduction of housing vouchers are observed. The most complicated issues are the poverty trap and unemployment trap, and housing consumption incentives. Moral hazard concerns can result in complicated anti‐fraud measures that may add to the burden of administering income‐related support. It is expected that the way in which income‐related housing support schemes in both countries are designed and administered may come under closer scrutiny. Politicians want these schemes to be in tune with the need for labour and housing market mobility, wage flexibility, and the need to bring the public budget under control.