Response to building affordable
and sustainable communities
Dr Michelle Norris
School of Social Policy, Social Work and Social Justice
University College Dublin
and Chair of the Housing Finance Agency (PLC)
What Can Irish Housing Policy Makers and
Practitioners Learn from UK Housing Policy?
Many examples of what not to do:

Costs of over concentration on demand side investment
 Housing benefit
 Help to buy

Undersupply of social housing


Exclusion of local authorities from provision

Government interference in housing associations
Several better role models in Europe
Much shorter list of what to do:


Localism
Non governmental finance for social housing
What not to Do
Output of Private and Social Housing in
England and Wales, 1950-2000
400000
350000
Lesson 1. Don’t rely almost
entirely on the market for new
supply

Undersupply of new dwellings in England
and Wales is a key driver of boom/bust
housing cycles

Reflects the planning system and
structure of the building industry

Also reflects undersupply of social
housing

Private output has remained between
140,000 and 120,000 units pa since 1970

Falling social output key driver of
declining total output
300000
250000
200000
150000
100000
50000
0
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
Social
Private
What not to do
Social Housing Output in Ireland, 20002012
Lesson 1 (continued)
 In Ireland falling social
housing output since
2008 has reinforced
the private housing
bust.
 Does the Irish private
house building
industry now face the
same barriers to
delivery as its British
counterparts?
 Can social housing
provide a solution?
What not to Do
Lesson 2. Don’t rely too heavily
on demand side subsidies
Sources of Housing for Low Income Households
in Ireland, 1990-2014
300,000
250,000

Very marked increase in demand side
spending particularly since the crisis.

o
Rent supplement spending is:
uncontrollable – demand led – efforts to
control this cause hardship
skews market rents
poor value for money
enables socio-spatial segregation,
particularly in cities
200,000
150,000
100,000
50,000
0
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
Tenants in leased dwellings
Rent Supplement Claimants
Housing Association Tenants
Local Authority Tenants
o
o
o

In view of the very restricted supply new
demand side subsidies such as help to
buy will simply drive up prices
What not to Do
Lesson 3. Regulate but don’t Micro Manage Social Housing Landlords

UK and Irish housing policy characterised by problematic interference in social housing
provision for political reasons:
- tenant purchase (Ireland)/ right to buy (UK) – recently extended to housing
associations
- differential rents (Ireland)/ rent regulation (UK) – recently undermined housing
associations’ ability to borrow and contributed to the categorisation of their debt as
on the government balance sheet

Irish social housing sector characterised by no regulation until recently, but in the UK some
housing associations view themselves as ‘social businesses’ with the emphasis on the latter.
 Regulation should promote efficiency, reduce risks, encourage investment in and protect the
social mission of the sector.

Interference for short term political ends undermines the long term effectiveness of the sector
What to do
1) Local not national solutions:
▪
▪
▪
▪
2)
Housing shortage and affordability constraints are overwhelmingly concentrated
in urban areas
Irish local government funding system does not enable the provision of tailored
local solutions .
Property tax revenue should enable investment of the scale required in for
instance Dublin and the design of interventions to meet Dublin’s specific needs.
Should include investment in land servicing to support private house building
Use of private finance for social housing
•
•
•
•
Problems associated with the change from local authority to housing association
sector social housing supply in the UK
Public investment in the sector is not too low
But significant success in leveraging private finance for housing even after the
bust of 2008
Demonstrates this is a viable option and insulates the sector from reliance solely
on government