sustainable housing policies best practice and worst cases in europe

October 6, 2008

OTB Research Institute

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Sustainable housing policiesBest practice and worst cases in EuropeIUT ConferenceIUT Conference

Decent and affordable housing in the Decent and affordable housing in the European CitiesEuropean Cities

Peter BoelhouwerPeter Boelhouwer


October 6, 2008 2

Content

• Current reasons for government Current reasons for government interventionintervention

• Different welfare and housing regimes Different welfare and housing regimes • Emerging trends in housing policiesEmerging trends in housing policies• Cross-cutting housing challenges and Cross-cutting housing challenges and

perspectivesperspectives


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Current reasons for government intervention

• The right of decent housing is a fundamental The right of decent housing is a fundamental right (constitutional law and universal right (constitutional law and universal declaration of the rights of human beings)declaration of the rights of human beings)

• Government is responsible for sufficient Government is responsible for sufficient affordable, qualitative descent housing on affordable, qualitative descent housing on the right placethe right place

• Minimum quality levelMinimum quality level• Content: place, production, affordability, Content: place, production, affordability,

distribution, qualitydistribution, quality• The decline of neo-liberalism; effects of the The decline of neo-liberalism; effects of the

credit crunchcredit crunch


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Different welfare regimes in Europe

• Liberal Liberal • Labour led corporatistLabour led corporatist• Conservative corporatistConservative corporatist• Modern corporatistModern corporatist• MediterraneanMediterranean• SocialistSocialist


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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 Fragmentation in the provision

welfare serviceswelfare services• Treatment of the traditional family in Treatment of the traditional family in

welfare politicswelfare politics• Role of the state, market and family Role of the state, market and family

in the provision of welfare servicesin the provision of welfare services


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Development welfare states

• Criticism on welfare statesCriticism on welfare states• Budgetary problemsBudgetary problems• More emphasis on the market en More emphasis on the market en

freedom of choicefreedom of choice• Enabling stateEnabling state• Empowerment, privatization, Empowerment, privatization,

responsibilityresponsibility• Crisis in the neo-liberal welfare state Crisis in the neo-liberal welfare state

modelmodel


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Development of European housing policy

• High degree of government High degree of government involvement, particularly to alleviate involvement, particularly to alleviate housing shortageshousing shortages

• Greater emphasis on housing quality Greater emphasis on housing quality • Emphasis on housing distribution, Emphasis on housing distribution,

withdrawal of the statewithdrawal of the state• Reappearance of qualitative and/or Reappearance of qualitative and/or

qualitative housing shortages, state qualitative housing shortages, state involvement increases in some involvement increases in some countriescountries


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Results from recent comparative housing research projects

• Norris and Shields 2004: Regular Norris and Shields 2004: Regular national report on housing national report on housing developments in European countriesdevelopments in European countries

• Whitehead & Scanlon 2007: Social Whitehead & Scanlon 2007: Social Housing in EuropeHousing in Europe

• Lawson and Milligan 2007: International Lawson and Milligan 2007: International trends in housing and policy responsestrends in housing and policy responses

• Czischke & Pittini 2007: Housing Europe Czischke & Pittini 2007: Housing Europe 20072007

• Ball 2008: The RICS European Housing Ball 2008: The RICS European Housing ReviewReview


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Emerging trends (1)

• Average standards of housing rising in most Average standards of housing rising in most European countries (except transition European countries (except transition economies?)economies?)

• Rising inflation and nominal interest rates: Rising inflation and nominal interest rates: stagflation?stagflation?

• Possible effects of the credit crunch: higher risk Possible effects of the credit crunch: higher risk premiums on mortgage lending and stronger premiums on mortgage lending and stronger ration criteriaration criteria

• Average financial housing costs are growing in Average financial housing costs are growing in most countriesmost countries

• Growing problems of access and affordabilityGrowing problems of access and affordability• The complexity, volatility and greater The complexity, volatility and greater

differentiation of housing markets within differentiation of housing markets within regions and countriesregions and countries


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Emerging trends (2)

• House prices have been rising sharply in House prices have been rising sharply in real terms across Europe over most of real terms across Europe over most of the last decade, but are decreasing in the last decade, but are decreasing in some countriessome countries

• Use of housing to support other Use of housing to support other borrowing, growth of re-mortgaging, borrowing, growth of re-mortgaging, interest only loansinterest only loans

• Adjustment needs for the existing stockAdjustment needs for the existing stock• Changing demands and needs arising Changing demands and needs arising

from a new profile of social housing from a new profile of social housing tenantstenants


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Emerging trends (3)

• Housing supply shortages in growth Housing supply shortages in growth regions and high supply inelasticityregions and high supply inelasticity

• Social exclusion and segregation related Social exclusion and segregation related to housing location, tenure and quality to housing location, tenure and quality and race and ethnicityand race and ethnicity

• Special housing needs of excluded Special housing needs of excluded groups, indigenous communities and groups, indigenous communities and those with support needsthose with support needs

• Housing market cycles often lacks Housing market cycles often lacks synchronisation with the political cycle synchronisation with the political cycle


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Emerging trends (4)

• Average households already in owner-occupation Average households already in owner-occupation are benefiting from greater choice, flexibility and are benefiting from greater choice, flexibility and stabilitystability

• Impact of inheritance and issues of Impact of inheritance and issues of intergenerational equityintergenerational equity

• concerns about systemic risks in the housing concerns about systemic risks in the housing system system - US current experiences- US current experiences- Impact of broader economic downturn- Impact of broader economic downturn

• Longer term issues relating to the use of housing Longer term issues relating to the use of housing assetsassets

• Inflexibility of owner-occupation as dominant Inflexibility of owner-occupation as dominant housing tenure for labour market, urban housing tenure for labour market, urban regenerating as well as the housing market itselfregenerating as well as the housing market itself


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General housing policy trends (1) • Restructuring of neighbourhoodsRestructuring of neighbourhoods• Increasing housing production in areas Increasing housing production in areas

of high demandof high demand• Facilitating home ownership for new Facilitating home ownership for new

entrants and lower-income householdsentrants and lower-income households• Promoting housing and neighbourhood Promoting housing and neighbourhood

sustainability (EU framework for sustainability (EU framework for sustainable urban development)sustainable urban development)

• Promotion of sufficient social housing, Promotion of sufficient social housing, ensuring affordability: reinventing the ensuring affordability: reinventing the social rented sectorsocial rented sector


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General housing policy trends (2) • The need for a longer term vision of The need for a longer term vision of

the role of the social rented sectorthe role of the social rented sector• Privatisation of the social rented Privatisation of the social rented

sectorsector• Pressure on social landlords to be Pressure on social landlords to be

more efficient and to respond to a more efficient and to respond to a increasingly diversifying demand increasingly diversifying demand

• Reorganising governance of social Reorganising governance of social housinghousing


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General housing policy trends (3)

• Use of private sector finance also Use of private sector finance also to support social sector housing to support social sector housing

• Promoting private investment in Promoting private investment in affordable housingaffordable housing

• The influence of international The influence of international agencies (EU directives on agencies (EU directives on competition issues and overcoming competition issues and overcoming regional disadvantages)regional disadvantages)


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Most successful international responses to emerging housing issues (Lawson and Milligan) (1)

• Housing as an integral part of social, Housing as an integral part of social, economic and environmental policyeconomic and environmental policy

• Sufficient housing expertise (good Sufficient housing expertise (good institutions)institutions)

• A long-term commitment to achieving A long-term commitment to achieving desired housing outcomesdesired housing outcomes

• A well designed mix of market and non-A well designed mix of market and non-market mechanismsmarket mechanisms

• A climate where diversity, flexibility and A climate where diversity, flexibility and local innovation can flourishlocal innovation can flourish


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Most successful international responses to emerging housing issues (Lawson and Milligan) (2)

• Comprehensive and up-to-date market Comprehensive and up-to-date market analysis and policy-orientated analysis and policy-orientated evaluation strategiesevaluation strategies

• The adoption of balanced multi-tenure The adoption of balanced multi-tenure policies with a common focus on policies with a common focus on increasing affordability and sustainable increasing affordability and sustainable housing options, improving tenure housing options, improving tenure choice and pathways and supporting choice and pathways and supporting socially mixes communitiessocially mixes communities

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sustainable housing policies best practice and worst cases in europe

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