Skip to main content
SpringerLink
Log in

The quasi-market based re-regulation: effects of setting housing association rents in England

  • Policy and Practice
  • Published:
Journal of Housing and the Built Environment Aims and scope Submit manuscript

Abstract

This paper outlines the current structure of housing association rents in England and examines critically the social rent-setting policy dilemmas. The paper charts the marked change of direction seen since the 1980s, with a switch from a deregulated approach giving housing associations freedom from central control within a clear accounting framework to set rents at least to cover costs, to a more regulated rent-setting system based on individual property values and local earnings levels. Using rental data from housing associations’ Regulatory and Statistical Returns, the study shows that social rents are now set on quasi-market principles that simulate some aspects of a real market reflecting the characteristics of the property, but continuing to be sub-market reflecting the lower household income of social tenants. However, the constraints of the rent-setting formula reduce the capacity of housing associations to undertake proper maintenance and improvement of existing stock. This will become a particular issue for those in London and the North of England where rents now only just cover operational costs.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

References

  • Boyne, G. A., & Walker, R. M. (1999). Social housing reforms in England and Wales: A public choice evaluation. Urban Studies, 36(13), 2237–2262.

    Article  Google Scholar 

  • Bramley, G. (1994). An affordability crisis in British housing: Dimensions, causes and policy impact. Housing Studies, 9(1), 103–124.

    Article  Google Scholar 

  • Cope, H. (1999). Housing associations: The policy and practice of registered social landlords (2nd ed.). Hampshire: Macmillan Press.

    Google Scholar 

  • Cowan, D., & McDermont, M. (2006). Regulating social housing: Governing decline. Oxon: Routledge-Cavendish.

    Google Scholar 

  • Dataspring. (2003–2008). Guides to local rent guides, part 1: Cross tenure rents. Cambridge: Cambridge Centre for Housing and Planning Research, University of Cambridge.

  • Department for Work and Pensions (DWP). (2007). Housing benefit and council tax benefit expenditure in by local authority district. Available: http://www.dwp.gov.uk/asd/asd4/HBandCTB_expenditure.asp.

  • Department for Work and Pensions (DWP). (2009). Housing benefit and council tax benefit. Available: http://research.dwp.gov.uk/asd/hbctb.asp.

  • Department of the Environment, Transport and the Region (DETR). (1998). Modern local government: In touch with the people. London: DETR.

  • Department of the Environment, Transport and the Region/Department of Social Security (DETR/DSS). (2000). Quality and choice: A decent home for all—The way forward for housing. London: DETR.

  • Glennerster, H., Hills, J., Travers, T., & Hendry, R. (2000). Paying for health, education, and housing: How does the centre pull the purse strings? Oxford: Oxford University Press.

  • Housing Corporation. (2008). Global accounts of housing associations 2007.

  • Malpass, P., & Warburton, M. (1993). The new financial regime for local authority housing. In P. Malpass & R. Means (Eds.), Implementing housing policy (pp. 91–105). Buckingham: Open University Press.

    Google Scholar 

  • Marsh, A. (2001). Restructuring social housing rents. In D. Cowan & A. Marsh (Eds.), Two steps forward: Housing policy into the new millennium (pp. 285–304). Bristol: Policy Press.

    Google Scholar 

  • Mullins, D. (1997). From regulatory capture to regulated competition: An interest group analysis of the regulation of housing associations in England. Housing Studies, 12(3), 301–319.

    Article  Google Scholar 

  • Office for National Statistics. (2008). 2008 Annual survey of hours and earnings (ASHE): Analysis by government office region by occupation. Available http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/2008_gor.pdf.

  • Office of the Deputy Prime Minister (ODPM). (2003). A guide to social rent reforms in the local authority sector. London: ODPM.

    Google Scholar 

  • Pawson, H., & Sosenko, F. (2008). Sector restructuring. Sector Study 61. Housing Corporation.

  • Peck, J., & Tickell, A. (2002). Neoliberalizing space. Antipode, 34(3), 380–404.

    Article  Google Scholar 

  • Randolph, B. (1993). The re-privatisation of housing associations. In P. Malpass & R. Means (Eds.), Implementing housing policy (pp. 39–58). Buckingham: Open University Press.

    Google Scholar 

  • Tang, C. P. Y. (2008). Between ‘market’ and ‘welfare’: Rent restructuring policy in the housing association sector, England. Housing Studies, 23(5), 737–759.

    Article  Google Scholar 

  • Tang, C. P. Y. (2009). Trend in housing association stock in 2008. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.

    Google Scholar 

  • Tenant Services Authority. (2009). 2008 Global accounts of housing associations—Landlords’ financial health.

  • Udagawa, C. (2008). Housing associations and the movement to target rents, 2007 to 2008. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.

    Google Scholar 

  • Udagawa, C., & Tang, C. P. Y. (2008a). Housing association rents and rental rates of return, 1998/99 to 2006/07. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.

    Google Scholar 

  • Udagawa, C., & Tang, C. P. Y. (2008b). Private rents and rental rates of return, 1996/97 to 2006/07. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.

    Google Scholar 

  • Udagawa, C., Tang, C. P. Y., & Martindale, K. (2008). Comparison of registered social landlord rents with owner occupier costs, 1998/99 to 2006/07. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.

    Google Scholar 

  • Walker, B., & Marsh, A. (1998). Pricing public housing services: Mirroring the market? Housing Studies, 13(4), 549–566.

    Article  Google Scholar 

  • Walker, B., & Marsh, A. (2003). Setting the rents of social housing: The impact and implications of rent restructuring in England. Urban Studies, 40(10), 2023–2047.

    Article  Google Scholar 

  • Walker, R. M., & van der Zon, F. M. J. (2000). Measuring the performance of social housing organisations in England and the Netherlands: A policy review and research agenda. Journal of Housing and the Built Environment, 15(2), 183–194.

    Article  Google Scholar 

  • Whitehead, C. M. E. (1999). The provision of finance for social housing: The UK experience. Urban Studies, 36(4), 657–672.

    Article  Google Scholar 

  • Wilcox, S. (2009). UK Housing Review 2008/09. Available: http://www.ukhousingreview.org.uk.

Download references

Author information

Authors and Affiliations

  1. Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge, CB3 9EP, UK

    Connie P. Y. Tang

Authors
  1. Connie P. Y. Tang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Connie P. Y. Tang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Tang, C.P.Y. The quasi-market based re-regulation: effects of setting housing association rents in England. J Hous and the Built Environ 26, 85–97 (2011). https://doi.org/10.1007/s10901-010-9204-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10901-010-9204-7

Keywords

Search

Navigation