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The Housing Dimension of Welfare Reform - the ICCR

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<strong>of</strong> payment, disturbance <strong>of</strong> domestic peace or misuse <strong>of</strong> <strong>the</strong> apartment<br />

does not require a period <strong>of</strong> notice. It does, however, entail juridical<br />

procedure <strong>of</strong> eviction that may last as long as one year.<br />

Measures to avoid evictions based on tenants’ default <strong>of</strong> payment are<br />

implemented in many countries. <strong>The</strong> legal framework <strong>of</strong> preventive<br />

action includes a broad range <strong>of</strong> social assistance to tenants threatened by<br />

<strong>the</strong> loss <strong>of</strong> a home. Measures range from assumption <strong>of</strong> rent arrears and<br />

counselling to transitional measures such as stay <strong>of</strong> eviction or<br />

postponement <strong>of</strong> enforcement <strong>of</strong> court orders to evict.<br />

More generally, <strong>the</strong> trend towards increased liberalisation <strong>of</strong> housing<br />

markets, a blurring <strong>of</strong> borders between public and private sectors and <strong>the</strong><br />

subsequent dynamics <strong>of</strong> market forces have made affordability an issue.<br />

Additional housing benefits have been established in countries where rent<br />

controls do not succeed to ensure affordability (e.g. in Italy). In o<strong>the</strong>r<br />

countries (Belgium, Ireland) such funds are not earmarked to support<br />

housing costs but are channelled through <strong>the</strong> more general social<br />

protection schemes. In Denmark, private rentals are controlled to <strong>the</strong><br />

extent that <strong>the</strong>y do not reflect market value which lowers access barriers.<br />

Looking at <strong>the</strong> countries studied in-depth by <strong>the</strong> EUROHOME-IMPACT<br />

project, <strong>the</strong> following can be noted:<br />

In Denmark a large part <strong>of</strong> private rentals (85 per cent) are regulated at<br />

cost level and do not reflect market prices. This, however, applies only to<br />

dwellings rented up to 1991. Tenants concluding leases <strong>the</strong>reafter cannot<br />

draw on rent control legislation. Two types <strong>of</strong> housing benefits aimed at<br />

tenants, regardless whe<strong>the</strong>r <strong>the</strong>y reside in public or private rentals, are<br />

available to pensioners (rent allowance) and non-pensioners (rent<br />

subsidy) respectively. Eligibility depends on household income, housing<br />

expenditure and household size. 21 per cent <strong>of</strong> households received such<br />

individual housing benefits in 1998. <strong>The</strong>se are <strong>of</strong>ten a major part <strong>of</strong> <strong>the</strong><br />

household income: <strong>the</strong>y amount, on average, to 50 per cent <strong>of</strong> <strong>the</strong> rent.<br />

In Austria private tenants may access public funds for improvement and<br />

renovation activities. If <strong>the</strong>y are eligible <strong>the</strong>y can fur<strong>the</strong>rmore apply for<br />

means-tested allowances (as can owners and tenants in social housing).<br />

<strong>The</strong> rent control system applicable to most <strong>of</strong> <strong>the</strong> private sector is<br />

complicated and frequently subject to law amendments but, overall, it<br />

does not tend to push rent amounts below market value.<br />

In Germany, private rentals are nei<strong>the</strong>r completely subject to market<br />

forces nor are <strong>the</strong>y strictly regulated. Rents may be increased but for<br />

existing contracts not above 20 per cent within three years. Tenants <strong>of</strong><br />

both <strong>the</strong> private and social sector can apply for means-tested allowances.<br />

EUROHOME-IMPACT FINAL REPORT 23

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