Sebastien Garnier y Alice Pittini
Interview with Sebastien Garnier (Innovation and Project Manager) and Alice Pittini (Research Coordinator) of Housing Europe (The European Federation of Public, Cooperative & Social Housing)
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The 2008 recession marked a quantitative and qualitative change in the approach and direction of housing policy in almost all EU states. In which member states has a greater slowdown in the programmes to promote subsidized housing and improve access to housing for the poorest sections of the population been detected, after this recession?
As mentioned in our publication "The State of Housing in the EU 2017" (1), the crisis could have been an opportunity to represent a turning point that would demonstrate the importance of investing in the affordable housing sector, in a responsible and non-speculative manner.
However, with few exceptions, in recent years providers of social or affordable housing in Europe have had to deal with fewer public resources and are more dependent on private finance. In countries with a long tradition of social renting the sector has shown more resilience in this crisis (such as Austria and France), but in general, a tendency towards a more residual role of social housing promotion is detected throughout Europe and, in any case, increasingly scarce resources are focused on promoting affordable housing for the poorer population (e.g. in the Netherlands).
However, in countries with little tradition of social housing (Central and Eastern European region) and/or where public finances have been particularly affected by the crisis (e.g. Greece, Ireland, Italy and Portugal), they focus on finding innovative financing models for the promotion of social and affordable housing that also include the necessary social measures.
In a number of countries, the construction of social housing played a countercyclical role after the crisis. Social housing suppliers in Belgium, Austria, France and the United Kingdom managed to increase the annual production of new housing during the period 2005-2015.
However, the new supply of social housing was affected by budget cuts in many countries: e.g. in Italy, the production of public housing was halved between 2005 and 2014, from around 9,000 units per year to 4,600 homes. In Spain, it went from more than 15 thousand homes in 2005 to 2.5 thousand homes in 2014.
Housing associations in Ireland built approximately 1.3 thousand homes in 2005, but only 350 homes in 2014, as a result of a dramatic reduction in state aid.
In the case of the Netherlands, the level of production of new housing by non-profit social housing associations fell from more than 40 thousand units in 2009 to around 20 thousand homes in 2014 as a result of reforms in fiscal restrictions and regulations.
The case of Greece, where the memorandum with the EU forced the closure of its only public social housing agency in exchange for financial aid, is emblematic.
In conclusion, we can observe that the trends that existed before the crisis, aimed at greater austerity and the implementation of reforms in the social or public housing sector that were already detected in many of the European countries, became even more intense as the financial crisis hit.
(1) http://www.housingeurope.eu/resource-1000/the-state-of-housing-in-the-eu-2017
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In recent years, which are the most dynamic public agents (State, Regional, Local, etc.) in the promotion of subsidized housing and support for families with fewer resources to access housing?
Economic-financial trends, migratory processes towards cities combined with post-crisis measures that weakened the suppliers of affordable or social housing, are becoming increasingly more visible nowadays, especially in cities.
With some exceptions, national governments in Europe have not taken the necessary responsibilities in terms of housing policy, especially to respond to low-income households.
The repercussions are increasingly felt in the most dynamic large cities where market and speculation pressures are observed with greater intensity.
From our perspective, a new trend is that more and more cities aim to be at the forefront of the struggle for access of decent and affordable housing for all citizens. A recent example is the Declaration within the framework of the United Nations of the alliance of cities for the right to housing led by Barcelona and Paris "Cities for Adequate Housing" (https://citiesforhousing.org/es/).
The Declaration states that "We, the local governments require regulatory and enforcement tools to protect our neighbourhoods from speculation. Furthermore, we need the tools to protect the use of housing as homes for people living in the cities we represent." We observe a rebalancing of competences between national states and local authorities. It is logical. Local governments perceive the problems first, from a closer perspective, and better understand how to design effective solutions to meet people's expectations regarding housing.
On the other hand, it is necessary to understand that strong funding instruments and stable frameworks are needed where action at the regional or national level seems to be the most effective. We see, for example, that the federal state in Germany, under the pressure of the cities, is increasing financial support for social housing previously under the control of the regions.
In this sense, it must be emphasized that EU policies aim to be more coherent with the increasingly crucial role of urban centres. It is for this reason that it has launched an Urban Agenda (including a group dedicated to housing) to see how to strengthen knowledge, financing and European policies in this field . (https://ec.europa.eu/futurium/en/urban-agenda)
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To what extent are housing policies promoted in the process of economic reactivation encouraging rental access, compared to purchasing? Likewise, are you backing, to a greater extent, granting aid to families to facilitate access to housing, as opposed to the direct promotion of subsidized housing?
In most countries, with exceptions such as Germany or Switzerland, aid (direct or tax benefits) to access mortgage financing is much more important than aid to access rent.
In countries such as the United Kingdom and the Netherlands, there is a strong increase in the price of housing purchased that is leaving more and more people unable to access housing. Likewise, a growing demand for housing rental is detected, which is required by low- and middle-income segments of the population.
With the exception of Spain where the State is helping more investments in rental housing, especially in subsidized housing, there is no clear trend towards the promotion of subsidized rental housing. But to achieve balanced housing markets it is necessary to regain a greater balance (fiscal and political) between rental and purchase.
Similarly, in Europe, the support policies for the construction of social and subsidized housing have to be rebalanced as well, which, in the context of the crisis, were increasingly oriented towards aid for individuals and families, without being accompanied by the necessary boosts that guarantee an adequate supply of affordable housing (quality and quantity). This approach to housing policy that has prioritized short-term aid can lead to unsustainable fiscal and economic situations.
The report 'The State of Housing in the EU 2017' mentions the case of the United Kingdom where this problem is probably the most significant. Low levels of public investment generated an insufficient stock of affordable housing (rented or owned) while increasing the number of low-income households entitled to aid for rental income.
Around one in three (32%) of all households that requested aid to pay rent corresponded to housing in the free rental market. This situation led to a sharp increase in public spending associated with these benefits in the United Kingdom in recent years. In 2015/16 there were more than 4 million applications for these grants and benefits, adding a total cost of £24.7bn in 2014/15. By comparison, investment in new housing construction in 2014/15 amounted to £5.4bn, which is less than a quarter of the aid mentioned.
With the growing shortage of housing in many European countries, particularly in urban areas that are experiencing rapid population growth, this housing policy model focusing on aid and benefits has become increasingly questioned.
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From a medium term perspective for the best design and improvement of the lines of action promoted by the Public Administrations:
- In your opinion, what lines of action and concrete measures do you consider could be promoted by the public sector regarding housing in the coming years?
- Is it necessary to more clearly back the promotion of subsidized housing in the light of the growing commitment of the Public Administrations to increase direct aid to families?
- What states or regional governments do you consider to be applying particularly interesting policies and programmes in backing rentals and access to subsidized housing for the poorest groups?
First, it is difficult to give a relevant response at European level. It depends on many idiosyncratic parameters at national, regional and local levels. The housing challenges and needs differ greatly within Europe.
Yes, it can be said that access to decent and affordable housing is a fundamental right and a powerful tool to strengthen communities, cities and countries, at different levels.
In this sense, providers of social and affordable housing (through its members, Housing Europe represents around 43,000 of them http://www.housingeurope.eu/section-37/about-us) contribute through their housing services to improving the social situation, fighting poverty, demographic challenges, better health and greater comfort of homes, a more effective use of energy, social mobility, and creating neighbourhoods that encourage possibilities and avoid tensions and social problems.
In this way, the minimum effort that can be expected in terms of public policies is for the fundamental role of housing to be recognized, affording it certain significance. For example, each national, regional and local government would have to have a long-term housing strategy based on economic and social needs, to send clear signs to agents (companies and private, public, non-profit organizations, etc.) giving a special role to suppliers devoted to social housing. This is also where organizations such as the Basque Housing Observatory, which is an example to be highlighted, play a very important role.
There are many examples of interesting policies and programmes especially in backing rental and access to subsidized housing for the poorest groups. We should highlight Finland, where they were able to significantly reduce the number of homeless people through the 'Housing First'-Housing First Europe Hub method. Likewise, a guide has been prepared in Spanish on the Housing First method, which is based on the concept that in order to eradicate homelessness, especially for those who need significant levels of support services, we must begin by providing a home as the first, and not the last stage.
In Austria and the Netherlands, the wide diversity of the social housing offer is very effective in responding to the demands of people and families with lower incomes, and at the same time acting effectively at neighbourhood level, guaranteeing a particular social mix. This approach is also being implemented in France.
In Germany, Switzerland and the Nordic countries we can highlight the role of housing cooperatives providing affordable projects from the social, architectural and urban perspective to different population classes and types.
In Eastern Europe, there are several initiatives to launch or further develop the social or affordable housing sector through initiatives at national or local authority level, such as in the Czech Republic.
Finally, a trend in recent years in the light of a lack of public resources is associated with the search for private financing. There are interesting examples of how to attract and access funding sources that aim to receive a certain financial return, but also a social one.
We take this opportunity to mention that it is important to continue exchanging experiences at international level on the different topics related to social housing. It is for this reason that Housing Europe is one of the co-organizers of the 2nd edition of the International Social Housing Festival that will take place in Lyon (France) at the beginning of June 2019.. (https://socialhousingfestival.com/)
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Finally, what is your assessment of housing policies in the Basque Country? How do you rate them compared to trends in housing policy in the main EU states and regions?
As we mentioned earlier, we think that the progress made in the Basque Country in housing policies is exemplary. The existence of the Basque Housing Observatory is a model to follow that demonstrates the importance given to this topic.
We also highlight the process of public and participatory consultation for the new Housing Master Plan. It is quite unique in Europe. Another point that should be followed by other countries and regions is its GAZTELAGUN Programme, which helps young people between 23 and 35 years of age to become emancipated. We also see that it is one of the groups facing more and more difficulties in finding housing. This type of programme allows us to help and accompany young people on their journey to access housing and close a generational gap in housing.
We also want to mention that Housing Europe aims to support this type of good practices and organizes its ERHIN contest where the best projects will receive awards in 2019 (more information: http://www.responsiblehousing.eu/).
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THANK YOU VERY MUCH FOR YOUR COLLABORATION
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