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Public Policy: Using Market-Based Approaches ● to use different and innovative methods of marketing and advertising property; and ● to use IT innovatively, for example using new technologies to promote choice. Individual pilot-scheme objectives varied across different localities reflecting differing local housing-market characteristics. For example, low-demand areas wished to use CBL to stimulate demand for social rented housing whereas highdemand areas hoped CBL would raise awareness of capacity constraints and thus encourage migration into other housing options. Three examples are given in table 10.2 below. Table 10.2 Pilot scheme objectives in different localities Blackburn Camden Market Harborough Form an effective partnership Empower applicants; Improve customer satisfaction between RSLs and the council; and sense of fairness by Increase transparency to improve increasing transparency; Simplify access for users; consumer understanding of their relative position on the register; Ensure all applicants given the Boost local demand for same opportunities and choices; social rented property; Increase awareness of capacity constraints; Ensure every property is advertised; Offer users a degree of control and choice; Ensure vulnerable groups and BME Provide feedback on bidding households are not disadvantaged; rankings; and Make the most efficient use and of IT; and Encourage movement to lower Use information from bidding to demand areas. Ensure needs of vulnerable guide strategic plans. groups are met. Source: Interviews as before. It is worth briefly comparing the national and local objectives for CBL schemes with the potential benefits of user choice identified by economic theory and summarised in Part III above. These economic benefits were divided into supplyside and demand-side benefits. Supply-side benefits are realised only if introducing choice leads to competition amongst different providers, and include sharper incentives for efficiency, quality and innovation. Demand-side benefits do not require service providers to be in competition with one another, and include improved allocative efficiency as a result of better information and benefits associated with empowering users. 120
It was not an objective of ODPM or CBL schemes to encourage competition between social landlords, suggesting in the first instance that potential benefits of user choice achieved through the supply side of the market are unlikely to apply to CBL. However, it was an objective of CBL to raise the profile of and increase the demand for social housing in low demand areas, particularly local authority housing. This may affect demand for private landlords operating outside of the scheme, as some applicants who would have rented privately instead rent from social landlords. Similarly the objective to encourage mobility between high and low demand areas may have led to lower demand areas competing with higher demand areas for applicants, although this would also have occurred under the previous administrative system. User choice schemes can also increase efficiency through the demand side of the market, primarily by improving the quality of information used as the basis for housing allocation decisions. Allowing applicants to express an interest in the properties they would like to be considered for increases information relative to a situation in which housing officials alone decide who gets which property. Part III of this report highlights lack of information as one cause of both market and government failure, and consequently identifies improving information as one means of increasing efficiency. Many of the stated objectives of CBL were also linked with improving the quality of information, including the objectives of increasing transparency and educating applicants about availability. For example by heightening awareness of capacity constraints, applicants can make the decision about whether to continue waiting or to investigate alternative housing options on the basis of superior information. The objective to make better use of the nation’s housing stock by reducing the number of vacant properties is one means in which any increase in efficiency might be observed and measured. The ODPM’s main objective of building sustainable communities is an example of an outcome that may be improved as a result of empowering users. Empowering users was often an objective in its own right for local schemes, and is also linked to the objective of improving customer satisfaction. The remaining objectives relate more to the design of CBL schemes than measurable outcomes. These include the objective of giving priority to those in greatest housing need, which is achieved by giving higher priority to vulnerable groups. PROBLEMS ADDRESSED BY CBL Section 10 – Choice-Based Letting in Social Housing Only one market mechanism, user choice, was considered in this context. However, the means in which it was introduced varied across local authorities to reflect the different needs of different areas. 121
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DTI ECONOMICS PAPER NO.14 Public Po
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DTI ECONOMICS PAPER NO.14 Public Po
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Contents Acknowledgements vi Forewo
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Contents Section 11 Emissions Tradi
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Foreword There is increasing intere
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SECTION 1 Introduction and summary
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Public Policy: Using Market-Based A
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SECTION 2 Using market mechanisms U
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SECTION 3 Lessons for the design an
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SECTION 4 Introduction This part of
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SECTION 7 Market-Based Mechanisms W
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Page 78 and 79: SECTION 8 Framework for assessing m
Page 81 and 82: Part IV Case Studies 73
Page 83 and 84: ● the Green and White papers behi
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Page 87 and 88: Table 9.3 Companies providing priso
Page 89 and 90: Section 9 - Competitive Tendering o
Page 91 and 92: detect any deviation from a collusi
Page 93 and 94: at HMPS began as an equal mix of th
Page 95 and 96: (e.g. lighting). This impact could
Page 97 and 98: MARKET POWER The full benefits of c
Page 99 and 100: However, it should be noted that te
Page 101 and 102: on competition is uncertain. The ab
Page 103 and 104: Controlling for problems of asymmet
Page 105 and 106: Procurement process design One way
Page 107 and 108: however, financial deductions are m
Page 111 and 112: The Independent Monitoring Board at
Page 113 and 114: Figure 9.1: Difference between the
Page 115 and 116: ‘While there were staff in the pu
Page 117 and 118: design the invitation to tender and
Page 121 and 122: and demand conditions. Second, we d
Page 123 and 124: DEMAND Anyone can apply to a local
Page 125 and 126: ● Rent deposit guarantee by the l
Page 127: The Green Paper stated the Governme
Page 131 and 132: DESCRIPTION OF MARKET MECHANISM The
Page 133 and 134: Once the outcome is determined, fee
Page 135 and 136: DEVELOPMENTS OVER TIME The major mo
Page 137 and 138: Concerns about capacity constraints
Page 139 and 140: from those already located within t
Page 141 and 142: In several areas, registrations by
Page 143 and 144: Controlling for information problem
Page 145 and 146: extent though, it was competition b
Page 147 and 148: Section 10 - Choice-Based Letting i
Page 149 and 150: levels are reducing and new tenants
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Page 161 and 162: A more detailed and diagrammatic de
Page 163 and 164: The costs of monitoring and reporti
Page 165 and 166: INITIAL ALLOCATION OF PROPERTY RIGH
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Page 169 and 170: COST-EFFICIENT EMISSIONS REDUCTIONS
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SECTION 12 Issues in the implementa
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