1. OTB Research Institute October 6, 2008 1 Sustainable housing policies Best practice and worst cases in Europe IUT Conference Decent and affordable housing in the European Cities Peter Boelhouwer

2. OTB Research Institute October 6, 2008 2 Content Current reasons for government intervention Current reasons for government intervention Different welfare and housing regimes Different welfare and housing regimes Emerging trends in housing policies Emerging trends in housing policies Cross-cutting housing challenges and perspectives Cross-cutting housing challenges and perspectives

3. OTB Research Institute October 6, 2008 3 Current 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 place Government is responsible for sufficient affordable, qualitative descent housing on the right place Minimum quality level Minimum quality level Content: place, production, affordability, distribution, quality Content: place, production, affordability, distribution, quality The decline of neo-liberalism; effects of the credit crunch The decline of neo-liberalism; effects of the credit crunch

4. OTB Research Institute October 6, 2008 4 Different welfare regimes in Europe Liberal Liberal Labour led corporatist Labour led corporatist Conservative corporatist Conservative corporatist Modern corporatist Modern corporatist Mediterranean Mediterranean Socialist Socialist

5. OTB Research Institute October 6, 2008 5 Main Characteristics of the welfare state De-commodification De-commodification Influence of central government Influence of central government Degree of political corporatism Degree of political corporatism Fragmentation in the provision welfare services Fragmentation in the provision welfare services Treatment of the traditional family in welfare politics Treatment of the traditional family in welfare politics Role of the state, market and family in the provision of welfare services Role of the state, market and family in the provision of welfare services

6. OTB Research Institute October 6, 2008 6 Development welfare states Criticism on welfare states Criticism on welfare states Budgetary problems Budgetary problems More emphasis on the market en freedom of choice More emphasis on the market en freedom of choice Enabling state Enabling state Empowerment, privatization, responsibility Empowerment, privatization, responsibility Crisis in the neo-liberal welfare state model Crisis in the neo-liberal welfare state model

7. OTB Research Institute October 6, 2008 7 Development of European housing policy High degree of government involvement, particularly to alleviate housing shortages High degree of government involvement, particularly to alleviate housing shortages Greater emphasis on housing quality Greater emphasis on housing quality Emphasis on housing distribution, withdrawal of the state Emphasis on housing distribution, withdrawal of the state Reappearance of qualitative and/or qualitative housing shortages, state involvement increases in some countries Reappearance of qualitative and/or qualitative housing shortages, state involvement increases in some countries

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10. OTB Research Institute October 6, 2008 10 Results from recent comparative housing research projects Norris and Shields 2004: Regular national report on housing developments in European countries Norris and Shields 2004: Regular national report on housing developments in European countries Whitehead & Scanlon 2007: Social Housing in Europe Whitehead & Scanlon 2007: Social Housing in Europe Lawson and Milligan 2007: International trends in housing and policy responses Lawson and Milligan 2007: International trends in housing and policy responses Czischke & Pittini 2007: Housing Europe 2007 Czischke & Pittini 2007: Housing Europe 2007 Ball 2008: The RICS European Housing Review Ball 2008: The RICS European Housing Review

11. OTB Research Institute October 6, 2008 11 Emerging trends (1) Average standards of housing rising in most European countries (except transition economies?) Average standards of housing rising in most European countries (except transition economies?) Rising inflation and nominal interest rates: stagflation? Rising inflation and nominal interest rates: stagflation? Possible effects of the credit crunch: higher risk premiums on mortgage lending and stronger ration criteria Possible effects of the credit crunch: higher risk premiums on mortgage lending and stronger ration criteria Average financial housing costs are growing in most countries Average financial housing costs are growing in most countries Growing problems of access and affordability Growing problems of access and affordability The complexity, volatility and greater differentiation of housing markets within regions and countries The complexity, volatility and greater differentiation of housing markets within regions and countries

12. OTB Research Institute October 6, 2008 12 Emerging trends (2) House prices have been rising sharply in real terms across Europe over most of the last decade, but are decreasing in some countries House prices have been rising sharply in real terms across Europe over most of the last decade, but are decreasing in some countries Use of housing to support other borrowing, growth of re-mortgaging, interest only loans Use of housing to support other borrowing, growth of re-mortgaging, interest only loans Adjustment needs for the existing stock Adjustment needs for the existing stock Changing demands and needs arising from a new profile of social housing tenants Changing demands and needs arising from a new profile of social housing tenants

13. OTB Research Institute October 6, 2008 13 Emerging trends (3) Housing supply shortages in growth regions and high supply inelasticity Housing supply shortages in growth regions and high supply inelasticity Social exclusion and segregation related to housing location, tenure and quality and race and ethnicity Social 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 Housing market cycles often lacks synchronisation with the political cycle Housing market cycles often lacks synchronisation with the political cycle

14. OTB Research Institute October 6, 2008 14 Emerging trends (4) Average households already in owner-occupation are benefiting from greater choice, flexibility and stability Average households already in owner-occupation are benefiting from greater choice, flexibility and stability Impact of inheritance and issues of intergenerational equity Impact of inheritance and issues of intergenerational equity concerns about systemic risks in the housing system concerns about systemic risks in the housing system - US current experiences - Impact of broader economic downturn Longer term issues relating to the use of housing assets Longer 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 itself Inflexibility of owner-occupation as dominant housing tenure for labour market, urban regenerating as well as the housing market itself

15. OTB Research Institute October 6, 2008 15 General housing policy trends (1) Restructuring of neighbourhoods Restructuring of neighbourhoods Increasing housing production in areas of high demand Increasing housing production in areas of high demand Facilitating home ownership for new entrants and lower-income households Facilitating home ownership for new entrants and lower-income households Promoting housing and neighbourhood sustainability (EU framework for sustainable urban development) Promoting housing and neighbourhood sustainability (EU framework for sustainable urban development) Promotion of sufficient social housing, ensuring affordability: reinventing the social rented sector Promotion of sufficient social housing, ensuring affordability: reinventing the social rented sector

16. OTB Research Institute October 6, 2008 16 General housing policy trends (2) The need for a longer term vision of the role of the social rented sector The need for a longer term vision of the role of the social rented sector Privatisation of the social rented sector Privatisation of the social rented sector Pressure on social landlords to be more efficient and to respond to a increasingly diversifying demand Pressure on social landlords to be more efficient and to respond to a increasingly diversifying demand Reorganising governance of social housing Reorganising governance of social housing

17. OTB Research Institute October 6, 2008 17 General housing policy trends (3) Use of private sector finance also to support social sector housing Use of private sector finance also to support social sector housing Promoting private investment in affordable housing Promoting private investment in affordable housing 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)

18. OTB Research Institute October 6, 2008 18 Most successful international responses to emerging housing issues (Lawson and Milligan) (1) Housing as an integral part of social, economic and environmental policy Housing 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 outcomes A long-term commitment to achieving desired housing outcomes A well designed mix of market and non- market mechanisms A well designed mix of market and non- market mechanisms A climate where diversity, flexibility and local innovation can flourish A climate where diversity, flexibility and local innovation can flourish

19. OTB Research Institute October 6, 2008 19 Most successful international responses to emerging housing issues (Lawson and Milligan) (2) Comprehensive and up-to-date market analysis and policy-orientated evaluation strategies Comprehensive 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

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