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HOUSING in the EU The potential for developing Community Land Trusts in Europe Brussels 2 July 2013 alice.pittini@housingeurope.eu. What is CECODHAS - Housing Europe?. CECODHAS - Housing Europe is the federation of cooperative, public, social housing
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HOUSING in the EU The potential for developing Community Land Trusts in Europe Brussels 2 July 2013 alice.pittini@housingeurope.eu
What is CECODHAS - Housing Europe? CECODHAS - Housing Europe is the federation of cooperative, public, social housing … a network of national and regional housing federations of housing organisations. Together the 43 members in 18 European members States manage 25 million dwellings which represent 12% of the total housing stock in the EU.
What we do Our members work together for a Europe which provides access to decent and affordable housing for all in communities which are: • socially, • economically and • environmentally sustainable… …and where all are enabled to reach their full potential.
Housing bubble at the heart of current crisis • Subprime crisis in the US triggered the financial crisis • Burst of housing bubble in the US but also Ireland, Spain…
Main factors • Increase in house prices up to the crisis • Shortage of affordable housing Nominal house prices increase
Mortgage indebtedness in Europe Residential mortgage debt to GDP ratios in the EU 27 EU average: from 32% in 1998 to 52.4% in 2010
Cost of housing in Europe • 8% of Europeans and a third of Europeans at risk of poverty spend more than 40% of their budget on housing • 8% live in severe material deprivation • 17% Europeans faced either utility or rent/mortgage arrears, or both in 2011 (14% in 2007) • 6% Europeans thought it was quite or very likely they will have to leave their accommodation within the next 6 months because they can no longer afford in 2011 (4% in 2007)
Housing needs in the EU • In France 1.7 million pending social housing demands, and yearly construction is 27.5% below the level required to meet housing needs. • In Spain, 300 000 households are being evicted, and it is estimated that 4 million people stopped warming their homes because they could no longer afford it. • In England social housing waiting lists increased constantly from about 1 021 000 in 1997, to over 1.8 million households in 2011 • the number of those in need of local authority housing in Ireland has increased by 75% since 2008, from 56 000 applicants to 98 000.
Issues raising from the crisis • Raising poverty and inequalities as consequence of the crisis = pressure on SH sector • Including ‘working poors’ – more vulnerable middle classes • Decreasing public support (direct and through taxation) • Difficulties in access to credit
Housing markets diversity in the EU Tenure split, UE 27
Trends in tenures Home-ownership in European OECD countries (1980-2004) Social housing in selected EU countries (1980-2008)
Social rental housing in the EU27 • Largest in NL, followed by AT and DK. • UK, FR, SW and FI also have a large social/public housing sector • On the contrary, no rental social housing in EL, very small share in CEE as well as PT, ES
Different providers usually co-existing Public (municipalities, publicly owned companies) often retreating from new construction due to budget constraints often focusing on the poorest/most vulnerable Private (mainly not for profit/limited profit organisations, but increasingly also commercial developers) In most cases ‘registered’ or ‘approved’ providers acting on not for profit basis In some countries also ways to mobilise (temporarily) dwellings owned by private individuals or commercial developers for social goals Cooperatives sometimes market actors, sometimes social role (special case Eastern Europe) Providers of social housing
Cooperative housing Note: figures only refer to CECODHAS members
Cooperative housing in a nutshell • A housing coop is a housing business in the form of a consumer cooperative mutually owned by its members, which operates in accordance with the Cooperative Principles and Values. democratically controlled by their members, according to the principle of “one person, one vote”. • Equity model can be: Individual ownership = the resident member holding full (most common in Eastern Europe), or partial title to the housing unit. Or collective ownership= the cooperative owns units and common parts and members receive a contract, right to occupy the individual housing unit on a permanent basis. • Non-equity model (or rental coop): the member has no ownership stake, he pays a rent and has to surrender the housing unit back to the cooperative if he leaves. Non-equity cooperatives are usually non-profit. In many parts of Canada and the United States, Germany, also Austria, Danmark, Belgium, Switzerland
Are there other ways? • Co-housing • Building Communities (Germany) • Self-build experiences • … CLTs? Have the advantage of combining long-term affordability, community involvement and cohesion, partnership at local level, not only housing but a range of local initiatives/services
3 MAIN EUROPEAN UNION POLICIES SOCIAL ECONOMIC ENVIRONMENTAL • ENERGY • ENVIRONMENT • WATER • LAND protection… • INTERNAL MARKET • COMPETITION • STATE AIDS • VAT RULES • COHESION • ANTI-POVERTY • SOCIAL PROTECTION • SSGIs • LEGISLATION • EU FUNDS • OPEN METHOD OF CO-ORDINATION (OMC) • BEST PRACTICES • EU STANDARTS • EU LEGISLATION • RESEARCH • EU FUNDS ? • GREEN VAT ? • LEGISLATION • CONTROL • NOTIFICATION • DISPUTE – ECJ RULING HOUSING POLICY « FRIENDLY » HOUSING POLICY « COSTLY » HOUSING POLICY « FRAMELY »
Housing in the European Semester • More attention is given to housing in the framework of the European economic governance: recognition that dysfunctionalities of housing markets are an important cause of the crisis • The European Semester 2013: 8/14 country in-depth reviews concern the housing market: UK, ES, FR, IT, NL, SI, FI, SE, DK • “Turning to households, deleveraging pressures are visible in a number of Member States and are mainly linked to pre-crisis housing market upswings. Downside risks for household balance sheets and consumption are linked to potential further corrections in housing markets.”
EU opportunities: Cohesion policy • Structural Funds; period 2007-2013: 9 billions € potentially eligible for housing energy upgrade, and 4 billions for urban renewal and housing for marginalised community. Beginning of 2012, less then 2 billions had been invested. • Next period: housing fully eligible for ERDF funding! Energy efficiency: Former objective 2 regions will have to dedicate at least 20% to support shift towards a low-carbon economy, including energy efficiency and use of renewable energy in the housing sector Social infrastructures: “(a) investing in health and social infrastructure which contribute to national, regional and local development, reducing inequalities in terms of health status, and transition from institutional to community-based services; (b) physical and economic regeneration of deprived urban and rural communities”; Urban development: 5% of ERDF resources allocated to integrated actions for sustainable urban development delegated to and directly managed by cities.
…. Thank you for your attention! Alice.pittini@housingeurope.eu