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Social Housing in Europe: from government to Governance

Paper presented to

Housing Sociale: Esperienze europee a confronto

per un modello lombardo

convegno INTERNAZIONALE

MILANO, 5th of March, 2009

by

Dr Michelle Norris

School of Applied Social Science

University College Dublin

Ireland

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Foundation:

Social housing =

Rented +

Subsidised +

Non market allocation

Around the start of the 20th Century

Social democracy

Philanthropy Public health concerns

Particularly in cities

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Dominant Ownership structure

Direct (local) government

Arms length local government

Independentnon profit

Independent for profit

UK

Ireland

State socialist central and eastern Europe

Luxembourg

Belgium

France

Sweden

Denmark

Netherlands

(west) Germany

Spain

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Developments post 1945

Public capital subsidies supply growth

0 5 10 15 20 25 30 35 40 45 50

Belgium

Czech Rep

Denmark

Finland

France

Germany

Hungary

Ireland

Netherlands

Portugal

Slovak Rep

Spain

UK

Socia

l ho

using

supp

ly (%

) 199

0

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Developments post 1980s/1990sSupply decline or stagnation, but not everywhere!

0 5 10 15 20 25 30 35 40

Belgium

Czech Rep

Denmark

Finland

France

Germany

Hungary

Ireland

Netherlands

Portugal

Slovak Rep

Sweden

UK

Socia

l ho

using

supp

ly (%

) 200

4

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Policy Changes Post 1980s/1990s

Reduction in public capital subsidies across Europe falling new building

Partially replaced by housing allowances and private sector funding in the West

Privatisation: In the West: UK, Netherlands In most of the post-socialist East – but pace varies

Rolling back of direct government supply of social housing More non profit sector and arms length provision,

tenant management – UK, Ireland More private sector provision – across Europe

More emphasis on social ownership

.

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Drivers of these developments

In the West: Sector redefined as the cause of housing problems,

not solution. Anti-government ideologies Housing supply and standards problems resolved Increasing availability of credit for low income

households In the post-socialist East

Influence of UN, World Bank Home ownership would promote social stability

during a period of rapid social and economic change.

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Challenges Arising Today:1. Residualisation – concentration of low-income

and ethnic minority households in social housing. Management challenges

Ethnically diverse client group Socialisation of the management task – eg. dealing

with anti-social behaviour

Negative impact of ‘poverty neighbourhoods’ Neighbourhood diversification strategies Social cohesion strategies

Finance challenges Higher income tenants can create opportunities for

cross subsidy

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Challenges Arising Today:

2. Funding:

Housing allowances are problematic: ‘uncontrollable’ Create poverty traps

Challenges in raising private sector funding: Credit crunch – limits use of public private partnerships Requires government support – guarantee, intermediary

lending etc Requires asset base. Insufficient to fund extensive new output.

Challenges associated with State funding – lack of money, EU competition rules.

Particular finance problems in post-socialist countries EU Structural funds have been made for available for

housing refurbishment.

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Challenges Arising Today:

3. Governance:

How does government influence social landlords without owning or directly funding them?

The social rented stock a valuable asset – can the State access this capital?

Social landlords own large parts of some cities – should they carry out other social activities, such as urban renewal?

How to ensure that local priorities are met?

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Challenges Arising Today:

4. Supply:

Growing demand for subsidised housing: In cities Among middle income households Due to the credit crunch

How does government increase supply, while: Minimising direct public funding Observing EU competition rules?