Social housing management: Concerns about effectiveness and efficiency in the Netherlands

Recently a discussion flared up in the Netherlands on the effectivenessand efficiency of providers of social housing. Though most people feel that Dutch housing associations are run effectively, there are no data to underpin this conclusion. The government is not clear about the criteria for each housing association: most of the criteria are unquantified and, to some extent, contradictory. Nor is it clear whether every individual housing association has to meet these criteriato the same extent. Many more doubts have been raised about the efficiencyof social housing providers, as housing associations do not act as if theywant to maximize profits.Several suggestions have been put forward to improve efficiency: periodicalexternal visitations, benchmarking, the introduction of a Real Estate Index,and outsourcing a substantial part of the management and development activities. The main conclusion so far is that we are under-informed aboutthe efficiency of housing associations. Some advisory bodies argue that theoverall efficiency of housing associations would improve if they were transferred from the semi-public to the private sector. They claim that thedemand side of the housing market could be strengthened by the introductionof housing vouchers and suggest that housing associations opt out of the public sector.These options fail to take account of the fact that we are insufficiently informed about the efficiency of commercial players on the housing market and the inherent shortcomings of free housing markets when it comes to accessibility, affordability and quality for low-income households, externaleffects and the cherry-picking of tenants by commercial landlords. Hence, weconclude that until more information is available on the true effectivenessand efficiency of housing associations, there are good reasons to continue their current hybrid status, which combines public tasks and market activities.