Social Housing in Europe : from government to Governance

1. 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

2. Foundation: Around the start of the 20th Century Social housing = Rented + Subsidised + Non market allocation

3. Dominant Ownership structure

4. Developments post 1945 Public capital subsidies supply growth

5. Developments post 1980s/1990s Supply decline or stagnation, but not everywhere!

6. 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 .

7. 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.

8. Challenges Arising Today: • 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

9. Challenges Arising Today: • 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.

10. Challenges Arising Today: • 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?

11. Challenges Arising Today: • 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?