housing developments in european countries - Department of ...

Section 3
Policies
Policies Section 3
The Luxembourg Government has also introduced a
and Slovenia are currently examining the potential
Housing policy makers in a number of other European
Among the new member States, reforms to the
number of measures intended to improve the
reforms to the legislative framework for the financing
countries are currently debating the reform of methods
management and maintenance of social housing have
accessibility and affordability of rented housing in
of social housing. As was alluded to earlier, in Slovenia
of social housing provision and management. Many of
also been introduced in Slovenia in recent years. New
recent years. Legislation introduced in 2002 provides
the key instrument used by Government to increase
the countries in this category are long-standing
regulations to enhance the rights of tenants in this
for the introduction of assistance to finance the
housing supply is the Housing Fund. This Fund lends
member States with relatively sizeable social housing
sector, and enable them to participate in decision
security deposit required by tenants. This initiative,
to municipalities, municipal housing funds and non-
sectors in European terms. In Denmark, for instance,
making regarding their accommodation, have recently
which involves the provision of an ‘advance’ on the
profit housing organisations, which are responsible
in recent years housing policy has placed increased
been introduced. In addition, recent housing legislation
security deposit by the Government, is intended to
primarily for the construction of non-profit rental
emphasis on the involvement of the private sector in
also provides for the introduction of uniform rents in
facilitate access by households with an average income
housing in the country. In Poland, the Government
providing and managing social housing by means of
the non-profit sector from 2005. Under the existing
to the private rental sector.
economic development strategy, published in 2002,
Public-Private Partnership arrangements. Subsidies for
system, different rents are levied on dwellings
Social Housing Policy
As mentioned above, increasing the supply of social
envisaged an increase in financial support for the lowprofit
rental sector but at the same time, the
introduction of a number of reforms to mechanisms
the construction of co-operative social housing are also
currently being phased out and will be completely
removed by 2005. In addition, the Government has
constructed before and after specific years.
Urban Renewal Policy
rented housing is a concern for policy makers in a
for funding this sector. Since the mid-1990s the
recently released a report that examines the possibility
The improvement of declining urban areas has been
significant number of the countries under review. The
development of affordable rental housing in Poland
of allowing social housing tenants to purchase their
the subject of recent policy interventions in a number
countries in this category are: Belgium, Bulgaria,
has been co-financed by preferential credit granted
dwellings, either as individuals or as part of a housing
of European countries. A significant theme in these
Estonia, the Czech Republic, France, Ireland, Latvia,
from National Housing Fund (NHF) resources. This
co-operative. In Austria, the principal concern for
interventions is the contribution which mixing different
Lithuania, Malta, Poland, Slovakia, Slovenia, Romania
institution provides long-term indexed mortgages at
policy makers is the implementation of the proposals,
housing tenures can make to addressing the problems
and Spain.
interest rates that are half those at market levels to
legislated for in 2001, regarding the privatisation of
of these areas. In Belgium for instance the question of
enable housing co-operatives and social housing
the limited profit housing construction companies
tenure mixing and also of improving the social mix in
Amongst this group, several of the long-standing EU
associations build dwellings for households with
which are wholly owned by central government. As
social housing is currently a key concern of policy
member States have significantly increased government
incomes below a specified level. In February 2001 the
mentioned in Section 2 of this report, regional
makers in all three regions of the country. As a result,
funding for social house building in recent years. In
housing construction legislation was amended to help
government in Belgium has significant powers in the
the Government of the Flanders region of Belgium has
Ireland, for instance, comprehensive assessments of
overcome the shortage of funds in the NHF. This
housing field and consequently the various social
recently introduced measures intended to facilitate
social housing need are carried out every three years by
legislation empowers the State bank (Bank
housing reforms currently under consideration by
households to buy or refurbish their dwelling in order
local authorities. The results of the 2002 assessment
Gospodarstwa Krajowego) to take out preferential
policy makers vary between the different regions of the
to ensure a social mix in cities. The Government of
indicate that 48,413 households are in need of social
loans from international financial institutions such as
country. In the Brussels Capital Region, the reform of
Wallonia has initiated measures to promote a greater
housing – an increase of 23% from the 1999
the European Investment Bank or the Council of
social housing rents is currently the focus of attention
social mix in social housing. In Luxembourg recent
assessment. In order to address this growing social
Europe Development Bank, transfer the resultant funds
from policy makers, as is enhancing co-operation
legislation obliges property developers to include at
housing need, over €5 billion was spent on social and
to the NHF and enables the NHF to sell its credit
between the various associations which provide social
least 10% rented housing in new housing
affordable housing measures in the first four years of
liabilities to commercial banks.
housing in this country in order to ensure that they can
developments to foster a greater social mix. In Ireland,
the Irish Government’s National Development Plan
respond more effectively to social housing need, the
Part V of the Planning and Development Act 2000
2000-2006. In Spain the current Central Government
Among the long-standing member States, Germany and
renewal of the existing social stock and the
enables local authorities to require that up to 20% of
Housing Plan (which covers the period 2002 to 2005)
Finland have also reformed the funding of social house
introduction of social work services into social housing
new housing developments is used for social housing
aims to increase the number of social dwellings. As
building in recent years. In Germany, central
associations and improving the management of
or affordable housing for sale to low and moderate
part of this plan, central and regional government have
government funding for new social house building has
applications for social housing. In the Wallonia region
income households at less than market value. Tax
devised agreements which provide for the construction
been substantially reduced by the Housing Assistance
of Belgium measures are being devised to encourage
incentives are available for schemes which facilitate the
of 17,575 new social rented dwellings.
Act which came into force in January 2002. As a result
the geographical relocation of social housing providers,
renewal of designated urban and rural areas. In
of this legislation the social housing construction
in order to avoid the over-abundance of social housing
Denmark, as a result of recent reforms, pension funds
Budgetary constraints in several of the new and long-
system underwent radical reform – it was transformed
in some localities and their absence in others. In
will be permitted to develop mixed tenancy housing
standing EU member States, together with the
into a social housing assistance scheme with a view to
Finland the income limits for access to social housing
developments including rented and owner-occupied
embryonic nature of the legislative framework for
targeting assistance more directly at lower-income
have recently been increased. This reform is intended
housing. Also in Denmark, recent reforms to urban
housing in the former group, means that efforts to
households and restructuring assistance to focus on the
to enable middle-income earners gain a social housing
renewal policy have emphasised increasing the
increase social housing supply have often been
modernisation of the existing housing stock rather
tenancy in order to improve the functioning of the
efficiency of public funds, by means of narrower
accompanied by the reform of funding for social
than the construction of new dwellings.
labour market in growth areas.
targeting of recipients of these funds and replacing
housing. In this vein, the housing ministers in Slovakia
some public funds by private sources. The expected
102 European Union Report
Regular National Report on Housing Developments in European Countries
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