Public Policy: Using Market-Based Approaches - Department for ...

and demand conditions. Second, we discuss the perceived failings that led to the
introduction of a market-based mechanism, and why the particular mechanism
was chosen. Third, we examine potential problems with this market mechanism,
how these problems were addressed in scheme design and the success in doing
so. In the final section we provide an overall assessment of the policy.
This case study draws on the following sources:
● an interview with Frances Walker, a policy official at ODPM and Kathleen
Kelly, then a senior research officer at ODPM;
● the housing green paper behind the introduction of the policy 115 ;
● two external studies of CBL pilots commissioned by the ODPM: an evaluation
of the 27 schemes conducted by Bristol and Cambridge Universities 116 ; and a
qualitative study of applicants’ views carried out by BMRB 117 in six of the
pilots;
● ODPM bidding guidance for local authorities;
● an LGA study on introducing choice to government services 118 ;
● a report published by Market Harborough officials and an academic from De
Montfort University based on Harborough’s experience with choice based
lettings 119 ; and
● interviews with officials involved in the implementation of CBL pilots in three
different areas, Blackburn, Camden and Market Harborough. These areas
were selected for more detailed study as they encompass a broad range of
local housing market conditions and so illustrate how user choice can be
introduced in very different contexts.
Market Background
Section 10 – Choice-Based Letting in Social Housing
The market considered in this case study is the allocation of low-cost, rented
accommodation provided by local authorities and Registered Social Landlords
for those considered to be in housing need in Britain, which we call the social
rented housing market. Although this report focuses primarily on the market for
social rented housing in England, the National Assembly for Wales has also
supported pilot CBL schemes in Caerphilly, Swansea and Torfaen. Similarly, the
Scottish Executive has promoted choice-based pilots in Edinburgh and
Berwickshire.
115 Housing Green Paper (2000) Quality and Choice: a Decent Home for All, London: The Stationery Office.
116 A. Marsh, D. Cowan, A. Cameron, M. Jones, C. Kiddle and C. Whitehead for ODPM (2004) Piloting choice based
lettings: An evaluation, London: The Stationery Office.
117 BMRB for ODPM (2004) Applicants’ Perspectives on Choice-Based Lettings, London: The Stationery Office.
118 LGA (2004) Enabling choice: research on choice in public services.
119 Brown, T., A. Dearling, R. Hunt, J. Richardson and N. Yates (2002) ‘Allocate or Let? Your Choice: Lessons from
Harborough Home Search’, Chartered Institute of Housing/ The Joseph Rowntree Foundation.
113