Challenge the future Delft University of Technology Housing policy: the Dutch case Coping with...

Challenge the future

DelftUniversity ofTechnology

Housing policy: the Dutch case

Coping with crisis

Marja Elsinga, OTB Research Institute for the Built Environment / TU Delft

2Social and affordable housing, the Dutch model

|

•Home ownership

•Social housing

3Social and affordable housing, the Dutch model

|

Development of housing tenures in the Netherlands

4Social and affordable housing, the Dutch model

|

Encourage home ownership: encourage debt

•Mortgage interest deduction: • 100% deductable at marginal rate

• 14 billion a year

•Mortgage guarantee • (up to loans of 350),

• 80% of current market

5Social and affordable housing, the Dutch model

|

House prices nominal Netherlands (* €1.000), NVM

6Social and affordable housing, the Dutch model

|

Number of new dwellings sold, quarterly, Monitor nieuwe woningen, 2012

7Social and affordable housing, the Dutch model

|

Consumer confidence, vereniging eigen huis, 2012

8Social and affordable housing, the Dutch model

|

Response to the crisis

•Early response 2008-2010• Mortgage interest deduction: Extend period of double

deduction from 2 to 3 years

• Mortgage guarantee: Increase maximum loan from 265 to 350.000 Euro

•Later response 2011- last week• Right to buy for social rental housing: 75% of social stock for

sale

• Reform mortgage interest deduction: make it less generous, proposal of last week, majority in parliament

9Social and affordable housing, the Dutch model

|

•Home ownership

•Social housing

10Social and affordable housing, the Dutch model

|

April 21, 2023

10housing policy, Osaka

Source: CECODHAS European Social Housing Observatory (2008)

11Social and affordable housing, the Dutch model

|

Development of housing tenures in the Netherlands

12Social and affordable housing, the Dutch model

|

The Dutch model of social housing

• The Dutch model:• Social (not public!!)

landlords that provide housing at below market rents and allocate to need

• Key features:• No subsidies• Broad target group• Access to loans • Tied to government

13Social and affordable housing, the Dutch model

|

Social Housing Governance

•Housing Act

•BBSH (Social Rented Sector Management Order): performance fields

•Performance agreements on the local level

•Two key institutions:

• Social Fund (CFV)

• Guarantee Fund (WSW)

14Social and affordable housing, the Dutch model

|

Mergers lead to fewer but larger housing associations (HAs)

0

100

200

300

400

500

600

700

800

900

1000

0

1000

2000

3000

4000

5000

6000

aantal corporaties

gemiddelde grootteaverage sizenumber of HAs

15Social and affordable housing, the Dutch model

|

Rent income

Housing sale revenues

New affordable housing

Community investments

Revolving Fund Principle

Housing refurbishment

16Social and affordable housing, the Dutch model

|

Current issues

•National government

• More rent increase, new tax for all land lords, 2013 (760 million per year) to finance housing allowance

• EU competition policy: end of the broad social model

• Survey by parliament

•Housing associations

• Less investment

• Intermediate tenures

• Scandal of Vestia

17Social and affordable housing, the Dutch model

|

System changes

• Forced by financial markets: lower LTV’s and thus less access to home ownership

• Reconsidering social housing, what is the key aim:

• Housing the most vulnerable

• Urban renewal investment

• Housing a broad group

• Safeguard affordability by housing allowance