Financing and Delivering Social Housing: challenges, causes and solutions. Dr Michelle Norris School of Social Policy, Social Work and Social Justice University College Dublin and Chair of the Housing Finance Agency (PLC) Paper presented European Commission and ESRI Housing Conference, Dublin, 6 November 2015
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Financing and Delivering Social Housing: challenges, causes and solutions.Dr Michelle NorrisSchool of Social Policy, Social Work and Social JusticeUniversity College Dublinand Chair of the Housing Finance Agency (PLC)
Paper presented European Commission and ESRI Housing Conference, Dublin, 6 November 2015
Focus of Presentation1) Problems2) Causes
Changing context Historic policy choices Recent policy choices Recent implementation
problems3) Solutions
1999
2002
2005
2008
2011
2013
0
20000
40000
60000
80000
100000
120000
Social Housing Need
Historic Policy ChoicesSocial Housing Finance Model
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
0
1000
2000
3000
4000
5000
6000
7000
8000
Social Housing Output in the 1980s and 1990s
Reform of funding model
Long Term Policy ChoicesPrivate Renting as de facto social housing
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Rent Supplement HAPRAS other private renters
Recent Policy Choices.Return to Borrowed Social Housing Finance but only for Housing Associations
Reform of funding model
Recent Implementation Problems1) Limited take up of borrowed finance:
▪ Housing Finance Agency – €500m available – 25 year loans, 3.25% fixed.▪ Repaid using a guaranteed revenue subsidy▪ Fifteen housing associations are eligible to borrow, only seven have done so▪ Very little borrowing for new building in Dublin and other cities.
2) Severe problems in Accessing Private Rented Housing for use as Social Housing
• Limited appetite among policy makers for rent certainty• Additional subsidies for landlords are likely to be captured in increased
rents – research evidence indicates between 35% and 75%• Increased rent supplement may disadvantage low paid private renters
and students
SolutionsBuild more social house building, particularly in cities:
1) Get local authorities involved again Enable them set up ‘arms length’ bodies to access borrowing Borrow on balance sheet for this purpose – need not be ‘additional’. Decouple housing development and management/ ownership
2) Better and more selective support for housing associations Reform financing model Support financial management skills acquisition Concentrate funding on associations which deliver and roll out regulation This will encourage amalgamations/ partnerships
3) Diversify sources of supply and finance Real Estate Investment Trusts (REITs) and PPPs Pension funds, credit unions, banks Competitive tendering for subsidy package
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