Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Housing systems in Western Europe: theory and practice 7-4-2010 Housing systems in Western Europe: Theory and practice Moscow Peter Boelhouwer OTB Research.

Similar presentations


Presentation on theme: "1 Housing systems in Western Europe: theory and practice 7-4-2010 Housing systems in Western Europe: Theory and practice Moscow Peter Boelhouwer OTB Research."— Presentation transcript:

1 1 Housing systems in Western Europe: theory and practice Housing systems in Western Europe: Theory and practice Moscow Peter Boelhouwer OTB Research Institute for the Built Environment

2 2 Housing systems in Western Europe: theory and practice Content Reasons for government interventionReasons for government intervention Housing: wobbly pillar between state and marketHousing: wobbly pillar between state and market Housing and the welfare stateHousing and the welfare state Developments in the owner-occupied and rented sectorDevelopments in the owner-occupied and rented sector Emerging trends on the housing market before the economic crisisEmerging trends on the housing market before the economic crisis Housing markets and the economic crisisHousing markets and the economic crisis Housing market crisis: what to do?Housing market crisis: what to do? ConclusionsConclusions

3 3 Housing systems in Western Europe: theory and practice Reasons for government intervention The right of decent housing is a fundamental right (constitutional law and universal declaration of the rights of human beings)The right of decent housing is a fundamental right (constitutional law and universal declaration of the rights of human beings) Government is responsible for sufficient affordable, qualitative descent housing on the right placeGovernment is responsible for sufficient affordable, qualitative descent housing on the right place Minimum quality levelMinimum quality level Content: place, production, affordability, distribution, qualityContent: place, production, affordability, distribution, quality

4 4 Housing systems in Western Europe: theory and practice Housing as the wobbly pillar of the welfare state: Harloe/Thorgersen Absence of standardAbsence of standard Definition of housing needDefinition of housing need Changes in achievementsChanges in achievements Broad government goals/ connection with other policy areasBroad government goals/ connection with other policy areas

5 5 Housing systems in Western Europe: theory and practice Main Characteristics of the welfare state De-commodificationDe-commodification Influence of central governmentInfluence of central government Degree of political corporatismDegree of political corporatism Fragmentation in the provision welfare servicesFragmentation in the provision welfare services Treatment of the traditional family in welfare politicsTreatment of the traditional family in welfare politics Role of the state, market and family in the provision of welfare servicesRole of the state, market and family in the provision of welfare services

6 6 Housing systems in Western Europe: theory and practice Development welfare states (2) Criticism on welfare statesCriticism on welfare states Budgetary problemsBudgetary problems More emphasis on the market and freedom of choiceMore emphasis on the market and freedom of choice Enabling stateEnabling state Empowerment, privatization, responsibilityEmpowerment, privatization, responsibility

7 7 Housing systems in Western Europe: theory and practice The three criteria of Esping- Andersen applied to housing

8 8 Housing systems in Western Europe: theory and practice Differences between the housing systems of the three welfare state regimes (1) CriterionSocial- democratic CorporatistLiberal De- commodification  large  quite large  low Stratification  relatively low  high, mainly based on social status  high, mainly based on income Mix of State, market and family  dominant position of the State  important position for the family  considerable influence for private non-profit organizations  dominant position of market parties State regulation  strong central government influence  functional decentralisation, incremental, problem- solving policies  relatively little State regulation (at both central and local levels) General housing policy objectives  guaranteed universal high level of housing quality  preservation of the social stratification in society  preferential treatment of the traditional family  stimulation of households and other private actors to take initiatives on the housing market  dominant position for the market  State only supports marginal groups

9 9 Housing systems in Western Europe: theory and practice Differences between the housing systems of the three welfare state regimes (2) CriterionSocial-democraticCorporatistLiberal Subsidization  large–scale production subsidies  subject subsidies for large target groups  segmented subsidies; specific arrangements for specific groups  means-tested subject subsidies  few production subsidies Price setting and price regulation  strong State influence on price setting and price regulation  moderate State influence  State regulation of prices to correct negative effects of the market  market determination of house prices Housing allocation  allocation on the basis of need  State intervention to correct the market  certain groups may be favoured in the allocation process  market determination of housing allocation in a large part of the housing stock  regulated allocation in a small part of the housing stock. (reserved for low- income groups)

10 10 Housing systems in Western Europe: theory and practice A proposed new conceptual model for the welfare state

11 11 Housing systems in Western Europe: theory and practice Main characteristics of the four welfare state regimes according to the modified theoretical framework Labour-led corporatist Conservative- corporatist Modern corporatist Liberal De- commodification  high  relatively high  low Influence of central government  high and direct  quite high and often indirect  low Degree of political corporatism  many corporatist structures and processes  few corporatist structures and processes Fragmentation in the provision of welfare services  fragmentation on the basis of measurable criteria  fragmentation on the basis of occupation and/or social status  fragmentation on the basis of measurable criteria  fragmentation on the basis of measurable criteria. Treatment of the traditional family in welfare policies  no preferential treatment for the traditional family  preferential treatment for the traditional family  no preferential treatment for the traditional family Role of State, market, and family in the provision of welfare services  dominant position of the State  important (if not dominant) position of the family  welfare services are provided by both market and State  dominant position of the market

12 12 Housing systems in Western Europe: theory and practice

13 13 Housing systems in Western Europe: theory and practice

14 14 Housing systems in Western Europe: theory and practice Policy for social renting (1) EnglandFlandersFrance Principal purpose of social renting Safety net for low- income households To build and provide social rental dwellings and to revalue the housing stock (right to decent housing) To provide affordable housing to households on low incomes Allocation systemAccording to need Rent regulation for new contracts According to policy prescription Rents based on tenants’ income and market rent (Flemish policy formula) Rent setting depends on contract between government and social landlord Rent regulation for rent adjustment Policy to link rents to quality and local incomes in the longer term Adjustments in line with household income Influenced by the government Regulation and supervision of landlords By Office of Tenants and Social Landlords Flemish government: supervision and registration. Sector organisation, VMSW: finance and guidance Supervised by central government organisation: MIILOS, financial supervision by Caisse des Dépôts Bricks-and-mortar subsidies Available Tax concessionsAvailable; depends on legal status landlord Available Housing allowancesAvailableImplicit via income- related rents Available Socio-economic profiles of tenants compared to market renting Lower incomesLower incomes and weaker social profile Relative concentration of low-income households

15 15 Housing systems in Western Europe: theory and practice Policy for social renting (2) GermanyIrelandNetherlands Principal purpose of social renting To rent the households up to certain income limits House those unable to afford market sector housing To house people who are unable to find an appropriate dwelling for themselves Allocation systemAccording to need Rent regulation for new contracts Contract between subsidy provider (municipality) and landlord Income-related rents; each council has its own scheme Regulated sector: based on quality points. Unregulated sector: market rents Rent regulation for rent adjustment Contract between subsidy provider and landlord Adjustments in line with household income Regulated sector: annual maximum rent increase set by government Regulation and supervision of landlords Depends on organisation type By central governmentSocial Housing Management Decree for housing associations. External supervision by Minister Bricks-and-mortar subsidies Available Tax concessionsAvailableAvailable; variations between local authority and housing associations Not available as of 2008 Housing allowancesAvailableNot availableAvailable Socio-economic profiles of tenants compared to market renting Probably relatively more lower incomes presently than in the past Low incomesRelatively strong in lower and middle- income deciles

16 16 Housing systems in Western Europe: theory and practice Policy for market renting (1) EnglandFlandersFrance Allocation systemFree market Free market (except for the intermediate sector) Rent regulation for new contracts Free marketMainly free marketFree; based on old rent or on reference dwellings in case of renewal of a contract for a sitting tenant Rent regulation for rent adjustment Based on market conditions Based on index of costs, a corrected consumer price index Based on index of costs Regulation and supervision of landlords Selective; by local authorities Depends on organisation type Bricks-and-mortar subsidies Not available Available for intermediate sector Tax concessionsTax treatment similar to other investors Not availableAvailable Housing allowancesAvailableExplicit subsidy for movers to higher quality or more suitable dwellings Available Socio-economic profiles of tenants compared to social renting Higher incomesHigher incomes and stronger social profile On average higher incomes than in social renting but also greater spread

17 17 Housing systems in Western Europe: theory and practice Policy for market renting (2) GermanyIrelandNetherlands Allocation systemFree market, waiting list for each landlord Free marketAllocation of cheap stock regulated in case of housing shortages Rent regulation for new contracts Free market, unless usury rents Free marketRegulated sector: based on quality points Rent regulation for rent adjustment Based on reference rentsAnnual reviews; based on market conditions Regulated sector: annual maximum increase set by government Regulation and supervision of landlords Depends on organisation type By local authorities; and through statutory registration with PRTB* Depends on organisation type Bricks-and-mortar subsidies Not available Tax concessionsAvailableSelective fiscal incentivesExemption from corporate tax for institutional investors Housing allowancesAvailableTax concessions for rental payments Available Socio-economic profiles of tenants compared to social renting No recent information found Mean incomes nearly twice social sector levels Relatively strong in the lowest and highest income deciles *PRTB = Private Residential Tenancies Board

18 18 Housing systems in Western Europe: theory and practice Key housing policy statements (Norris and Shiels) (1) Netherlands: accelerate restructuring neighbourhoods and housing production, sustainable living climate, promotion of home-ownership, ensure affordabilityNetherlands: accelerate restructuring neighbourhoods and housing production, sustainable living climate, promotion of home-ownership, ensure affordability Belgium: promoting home ownership and provision of sufficient social housingBelgium: promoting home ownership and provision of sufficient social housing Germany: promote home ownership and devise the range of housing policies necessary to address the increased regional differentiation of housing marketsGermany: promote home ownership and devise the range of housing policies necessary to address the increased regional differentiation of housing markets

19 19 Housing systems in Western Europe: theory and practice Key housing policy statements (Norris and Shiels) (2) France: to house every person according to her/his wishes, action must be taken on each link in the housing chain. This includes: facilitating home ownership and stimulating private rental and social housing outputFrance: to house every person according to her/his wishes, action must be taken on each link in the housing chain. This includes: facilitating home ownership and stimulating private rental and social housing output England: increase the provision of high quality and affordable housing in areas of high demand and tackle the housing shortage in London and the South EastEngland: increase the provision of high quality and affordable housing in areas of high demand and tackle the housing shortage in London and the South East Sweden: housing policy aims at the supply of high-standard, affordable housingSweden: housing policy aims at the supply of high-standard, affordable housing

20 20 Housing systems in Western Europe: theory and practice Key housing policy statements (Norris and Shiels) (3) Denmark: good and healthy housing for all.Denmark: good and healthy housing for all. Austria: housing as a basic human need should not be subject to free market mechanismAustria: housing as a basic human need should not be subject to free market mechanism Spain: increasing the proportion on rented dwellings in the Spanish housing stockSpain: increasing the proportion on rented dwellings in the Spanish housing stock Slovakia: differentiated state support for construction intended for the various income groups within the populationSlovakia: differentiated state support for construction intended for the various income groups within the population Slovenia: construction of new dwellings annually, to meet all housing needsSlovenia: construction of new dwellings annually, to meet all housing needs

21 21 Housing systems in Western Europe: theory and practice Cross-cutting housing challenges (Lawson & Milligan) Rising housing costs and declining housing affordabiltyRising housing costs and declining housing affordabilty Housing supply shortages and issues of housing qualityHousing supply shortages and issues of housing quality Social exclusion and segregation related to housing location, tenure and quality and race and ethnicitySocial exclusion and segregation related to housing location, tenure and quality and race and ethnicity Special housing needs of excluded groups, indigenous communities and those with support needs.Special housing needs of excluded groups, indigenous communities and those with support needs.

22 22 Housing systems in Western Europe: theory and practice National policy responses (Lawson and Milligan) Facilitating home ownership for new entrants and lower- income householdsFacilitating home ownership for new entrants and lower- income households Promoting private investment in affordable housingPromoting private investment in affordable housing Using the existing private rental marketUsing the existing private rental market Reinventing social housingReinventing social housing Promoting housing and neighbourhood sustainabilityPromoting housing and neighbourhood sustainability

23 23 Housing systems in Western Europe: theory and practice Developments in governance and delivery in housing systems (Lawson and Milligan) The complexity, volatility and greater differentiation of housing markets within regions and countriesThe complexity, volatility and greater differentiation of housing markets within regions and countries Neo-liberal agenda’s such as public sector reform and privatisationNeo-liberal agenda’s such as public sector reform and privatisation Growing acknowledgement that conditions of privatisation need to change, as simple formulations of less government and more market are not workingGrowing acknowledgement that conditions of privatisation need to change, as simple formulations of less government and more market are not working The influence of international agencies (EU directives on competition issues and overcoming regional disadvantages)The influence of international agencies (EU directives on competition issues and overcoming regional disadvantages)

24 24 Housing systems in Western Europe: theory and practice Most successful international responses to emerging housing issues (Lawson and Milligan) (1) Housing as an integral part of social, economic and environmental policyHousing as an integral part of social, economic and environmental policy Sufficient housing expertise (good institutions)Sufficient housing expertise (good institutions) A long-term commitment to achieving desired housing outcomesA long-term commitment to achieving desired housing outcomes A well designed mix of market and non-market mechanismsA well designed mix of market and non-market mechanisms A climate where diversity, flexibility and local innovation can flourishA climate where diversity, flexibility and local innovation can flourish

25 25 Housing systems in Western Europe: theory and practice Most successful international responses to emerging housing issues (Lawson and Milligan) (2) Comprehensive and up-to-date market analysis and policy- orientated evaluation strategiesComprehensive and up-to-date market analysis and policy- orientated evaluation strategies The adoption of balanced multi-tenure policies with a common focus on increasing affordability and sustainable housing options, improving tenure choice and pathways and supporting socially mixes communities.The adoption of balanced multi-tenure policies with a common focus on increasing affordability and sustainable housing options, improving tenure choice and pathways and supporting socially mixes communities.

26 26 Housing systems in Western Europe: theory and practice Emerging trends (1): General improvement in housing conditions (Whitehead) No numerical shortageNo numerical shortage Average standards of housing rising in most European countries (except transition economies?)Average standards of housing rising in most European countries (except transition economies?) Lower inflation and nominal interest ratesLower inflation and nominal interest rates Average financial housing costs stable or falling in most countriesAverage financial housing costs stable or falling in most countries But growing problems of access and affordabilityBut growing problems of access and affordability Increasing regional and urban differentiationIncreasing regional and urban differentiation

27 27 Housing systems in Western Europe: theory and practice Emerging trends (2): House prices (Whitehead) House prices have been rising sharply in real terms across Europe over most of the last decade (starting to slow down)House prices have been rising sharply in real terms across Europe over most of the last decade (starting to slow down) Rises out of line with incomesRises out of line with incomes - impact of structural changes in inflation and interest rates - speculative bubbles or underlying economic growth/constraints? - speculative bubbles or underlying economic growth/constraints? - housing as a asset class Major exceptions, Germany, Austria en SwitzerlandMajor exceptions, Germany, Austria en Switzerland

28 28 Housing systems in Western Europe: theory and practice Emerging trends (3): Role of private sector finance (Whitehead) Particularly in northern Europe where housing finance instruments highly developedParticularly in northern Europe where housing finance instruments highly developed Development of mortgages backed securities/ bond issues (Denmark in forefront)Development of mortgages backed securities/ bond issues (Denmark in forefront) Use of private funding to support social sector housingUse of private funding to support social sector housing Use of housing to support other borrowing, growth of re- mortgaging, interest only loans etc.Use of housing to support other borrowing, growth of re- mortgaging, interest only loans etc.

29 29 Housing systems in Western Europe: theory and practice Conclusions: perspectives (Whitehead) Average households already in owner-occupation are benefiting from greater choice, flexibility and stabilityAverage households already in owner-occupation are benefiting from greater choice, flexibility and stability Marginal purchasers and new entrants face major access and affordability problemsMarginal purchasers and new entrants face major access and affordability problems Impact of inheritance and issues of intergenerational equityImpact of inheritance and issues of intergenerational equity Concerns about systemic risks in the housing systemConcerns about systemic risks in the housing system - US current experiences - Impact of broader economic downturn Longer term issues relating to the use of housing assetsLonger term issues relating to the use of housing assets Inflexibility of owner-occupation as dominant housing tenure for labour market, urban regenerating as well as the housing market itselfInflexibility of owner-occupation as dominant housing tenure for labour market, urban regenerating as well as the housing market itself

30 30 Housing systems in Western Europe: theory and practice Economic and housing market indicators by country BelGerIRLESFNLATSWUK General economic indicators Growth GDP Growth GDP Unemployment average 2007 – Unemployment latest (jan 2010) Housing market indicators House price change Mid 2007 – mid 2009* 0%-12%-23%-7%-6%-7%1%6%-18% Latest house price trend upstableDown (rapidly) up stable up Transactions %-4% -2%-36%-33%nav-10%nav-11%-46% Building permits %-3% -6%-20%-60%-17%-1%nav-16%Construc- ting new series Source: GDP and Unemployment = Eurostat; House price change = national statistical bureaus and Hypostat 2008; Transactions = Hypostat 2008; Transactions latest is national sources. *Mid 2007 the house prices in most countries reached their highest levels; mid 2009 is the year where most nations have data available. Note: Germany and Belgium = single family dwellings

31 31 Housing systems in Western Europe: theory and practice Measures taken Protection of home owners: avoiding payment problems and evictionProtection of home owners: avoiding payment problems and eviction Stimulating demand for a new existing owner occupied homes by householdsStimulating demand for a new existing owner occupied homes by households Stimulating social/public housing associations to take on unsold completed new dwellings initially targeted for owner occupationStimulating social/public housing associations to take on unsold completed new dwellings initially targeted for owner occupation Stimulating production of social/public rental dwellings as an anti-cyclical measure for the construction sectorStimulating production of social/public rental dwellings as an anti-cyclical measure for the construction sector

32 32 Housing systems in Western Europe: theory and practice Crisis measures what to do and what not to do? Number of countries have taken only limited actionNumber of countries have taken only limited action Extra protection for home owners to avoid repossessionsExtra protection for home owners to avoid repossessions Attempts to get rid of the overhang/unsold dwellingsAttempts to get rid of the overhang/unsold dwellings Stimulating demand for newly constructed dwellingsStimulating demand for newly constructed dwellings Building of new social housingBuilding of new social housing Buying unsold new dwellings by social landlordsBuying unsold new dwellings by social landlords Unlimited speculative building and a laissez faire attitude on planningUnlimited speculative building and a laissez faire attitude on planning Differences in the structure of the housing market are quite important to explain the crisis and measuresDifferences in the structure of the housing market are quite important to explain the crisis and measures

33 33 Housing systems in Western Europe: theory and practice Sensitivity of housing markets to the economic climate Dynamic markets or more sensitive than static marketsDynamic markets or more sensitive than static markets Effects of crisis are strongest in England and Ireland: limited stabilizing factors through government policy or via financial industry, buildings are built speculatively and in Ireland few planning restrictionsEffects of crisis are strongest in England and Ireland: limited stabilizing factors through government policy or via financial industry, buildings are built speculatively and in Ireland few planning restrictions Dutch market for new houses has been hit hardDutch market for new houses has been hit hard Germany prices of existing dwellings show a strong declineGermany prices of existing dwellings show a strong decline Belgium least trouble form the economic crisisBelgium least trouble form the economic crisis

34 34 Housing systems in Western Europe: theory and practice Conclusions Countries that are severely affected by the crisis are also confronted with the largest problems on the housing marketCountries that are severely affected by the crisis are also confronted with the largest problems on the housing market Difficult to establish the effects of the economic crisis and the effect of the structure of the housing market and stabilizing factorsDifficult to establish the effects of the economic crisis and the effect of the structure of the housing market and stabilizing factors Possible relation to the general economic structure and the housing market structure: a nation that is highly sensitive to the general economic climate also has a housing market structure that is sensitive to the economic climatePossible relation to the general economic structure and the housing market structure: a nation that is highly sensitive to the general economic climate also has a housing market structure that is sensitive to the economic climate

35 35 Housing systems in Western Europe: theory and practice End


Download ppt "1 Housing systems in Western Europe: theory and practice 7-4-2010 Housing systems in Western Europe: Theory and practice Moscow Peter Boelhouwer OTB Research."

Similar presentations


Ads by Google