Housing policy: the Dutch case
Coping with crisis
Marja Elsinga, OTB Research Institute for the Built Environment / TU Delft
Delft
University of
Technology
Challenge the future
• Home ownership
• Social housing
Social and affordable housing, the Dutch model
2|
Development of housing tenures in
the Netherlands
Social and affordable housing, the Dutch model
3|
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
Social and affordable housing, the Dutch model
4|
House prices nominal Netherlands
(* €1.000), NVM
Social and affordable housing, the Dutch model
5|
Number of new dwellings sold,
quarterly, Monitor nieuwe woningen, 2012
16000
14000
12000
10000
8000
6000
4000
2000
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
dwellings sold
Social and affordable housing, the Dutch model
6|
Consumer confidence,
vereniging eigen huis, 2012
Social and affordable housing, the Dutch model
7|
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
Social and affordable housing, the Dutch model
8|
• Home ownership
• Social housing
Social and affordable housing, the Dutch model
9|
April 13,
2015
housing policy, Osaka
Social and affordable housing, the Dutch model
Source: CECODHAS European Social Housing Observatory (2008)
10
10 |
Development of housing tenures in
the Netherlands
Social and affordable housing, the Dutch model
11 |
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
Social and affordable housing, the Dutch model
12 |
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)
Social and affordable housing, the Dutch model
13 |
Mergers lead to fewer but larger
housing associations (HAs)
1000
6000
900
5000
800
700
4000
600
500
3000
aantal
corporaties
number
of HAs
average size
gemiddelde
grootte
400
2000
300
200
1000
100
0
19
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
09
0
Social and affordable housing, the Dutch model
14 |
Revolving Fund Principle
New affordable housing
Rent income
Housing refurbishment
Housing sale revenues
Community investments
Social and affordable housing, the Dutch model
15 |
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
Social and affordable housing, the Dutch model
16 |
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
Social and affordable housing, the Dutch model
17 |