The quasi-market based re-regulation: effects of setting housing association rents in England
- Connie P. Y. Tang
- … show all 1 hide
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
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.
- Boyne, G. A., & Walker, R. M. (1999). Social housing reforms in England and Wales: A public choice evaluation. Urban Studies, 36(13), 2237–2262. CrossRef
- Bramley, G. (1994). An affordability crisis in British housing: Dimensions, causes and policy impact. Housing Studies, 9(1), 103–124. CrossRef
- Cope, H. (1999). Housing associations: The policy and practice of registered social landlords (2nd ed.). Hampshire: Macmillan Press.
- Cowan, D., & McDermont, M. (2006). Regulating social housing: Governing decline. Oxon: Routledge-Cavendish.
- 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.
- 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.
- 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. CrossRef
- 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.
- Pawson, H., & Sosenko, F. (2008). Sector restructuring. Sector Study 61. Housing Corporation.
- Peck, J., & Tickell, A. (2002). Neoliberalizing space. Antipode, 34(3), 380–404. CrossRef
- 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.
- Tang, C. P. Y. (2008). Between ‘market’ and ‘welfare’: Rent restructuring policy in the housing association sector, England. Housing Studies, 23(5), 737–759. CrossRef
- Tang, C. P. Y. (2009). Trend in housing association stock in 2008. Cambridge: Dataspring, Cambridge Centre for Housing and Planning Research.
- 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.
- 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.
- 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.
- 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.
- Walker, B., & Marsh, A. (1998). Pricing public housing services: Mirroring the market? Housing Studies, 13(4), 549–566. CrossRef
- 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. CrossRef
- 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. CrossRef
- Whitehead, C. M. E. (1999). The provision of finance for social housing: The UK experience. Urban Studies, 36(4), 657–672. CrossRef
- Wilcox, S. (2009). UK Housing Review 2008/09. Available: http://www.ukhousingreview.org.uk.
- The quasi-market based re-regulation: effects of setting housing association rents in England
Journal of Housing and the Built Environment
Volume 26, Issue 1 , pp 85-97
- Cover Date
- Print ISSN
- Online ISSN
- Springer Netherlands
- Additional Links
- Financial viability
- Social housing
- Rental differential
- Author Affiliations
- 1. Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge, CB3 9EP, UK