The Housing Dimension of Welfare Reform - the ICCR
The Housing Dimension of Welfare Reform - the ICCR
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