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Housing allowances in comparative perspective$

Peter Kemp

Print publication date: 2007

Print ISBN-13: 9781861347541

Published to Policy Press Scholarship Online: March 2012

DOI: 10.1332/policypress/9781861347541.001.0001

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(p.288) (p.289) Index

(p.288) (p.289) Index

Source:
Housing allowances in comparative perspective
Publisher:
Policy Press
A
Abramovici, G. 139, 142
Accommodation Supplement 44, 45–6
analysis 50–4
eligibility 45
expenditure 49–50
impact of 51–3
recipients 46, 47
tenure of recipients 55
affordability 5, 6, 268, 278
Australia 25–8
Britain 109
Canada 61–2, 63–4
Czech Republic 243
France 150
Netherlands 195, 196
New Zealand 41, 42, 54, 55
United States 93–4, 96
affordability gap 67, 69
Affordable Housing Initiative (AHI) 63
Afsa, C. 148, 153
Åhrén, P. 206
Aide Personalisée au Logement (APL) 143, 144, 153
Allers, M.A. 206
Allocation de Logement Familiale (ALF) 143, 144, 153
Allocation de Logement Sociale (ALS) 143, 144, 153
Allocation Logement (AL) 72, 73
America see United States
Arbeitslosengeld II 161, 170–1, 172–4, 180, 186–7
impact of 176–8
policy debates and reform 185
Armstrong, J. 97
Australia
Commonwealth-State Housing Agreement (CSHA) 21, 32
community housing sector 32–4
disincentives to work 31–2
government housing expenditure 18–19
homeownership 18, 24
housing affordability 25–8
housing allowances see Australia, housing allowances
housing policy 21–2, 23–4
housing tenure 267
income support 19–20, 31
integrated allowance scheme 30
low-income households 20, 29
not-for-profit housing sector 32–4
pensioners 19, 31
private rental sector 21, 27, 29, 30
public housing sector 21, 23–4, 28, 29
security of tenure 29
social assistance 19
social housing sector 17, 21, 30
unemployment 31–2
welfare reform 31–2, 278
work disincentives 31–2
Australia, housing allowances
comparison with other countries 270–5
impact of 24–9
policy debates 30–2
Rent Assistance 32–3, 34
eligibility 20, 21–2, 33
expenditure calculation 22–3
impact of 25–8
payment calculation 22
recipients 24–5, 26, 31
role and design of 21–4
rent rebate schemes 21, 23–4, 28, 32
B
Bania, N. 95, 96
Barbier, J.-C. 138, 139
Basgal, O. 97
benefit indexation 80, 277
Berry, M. 18, 32
Beveridge, W. 8, 109
Bloom, H. 99
Börsch-Supan, A. 179, 184
Bourassa, S.C. 208
Bradbury, K.L. 269, 279
bricks-and-mortar subsidies 1, 11, 268
Britain
disincentives to work 123
economic recession 112, 120
homeless people 126–7
homeownership 107
housing affordability 109
housing allowances see Britain, housing allowances
housing and housing policy 107–9
housing associations 108
housing tenure 107, 267
income taper 123
Jobseeker’s Allowance (JSA) 106, 113, 274
local authority housing sector 108
low-income homeowners 119–22
mortgage interest tax relief 108, 115, 121
pensioners 114
poverty 107
poverty trap 123
private rental sector 107–8, 126–8
rent-to-income ratios 118
(p.290) ‘right-to-buy’ policy 107
social housing 125–6
social security 106–7, 109–10, 111
unemployment benefit 274
work disincentives 123
Britain, housing allowances
comparison with other countries 270–5
Housing Benefit 111
design 112–14
entitlement calculation 112–14
fraud and error 123–4
recipients 117–18
role and impact 114–19
take-up rate 118
Income Support for Mortgage Interest (ISMI) 105, 112, 119
Local Housing Allowance (LHA) 124–8, 280, 282
mortgage interest payments (MIP) 119–21
origins and development 109–12
Rent Rebates and Allowances 110–11, 112
British Colombia (BC) 66, 70, 74
Burke, T. 29
C
Canada
affordability gap 67, 69
Affordable Housing Initiative (AHI) 63
Canada Mortgage and Housing Corporation (CMHC) 61–2, 69
Canadian Housing and Renewal Association (CHRA) 78–9
economic recession 63
homelessness 63, 79, 80
housing affordability 61–2, 63–4
housing allowances see Canada, housing allowances
housing consumption 77
housing tenure 267
income transfer programmes 64–5
low-income households 70, 72, 74, 78–9
non-profit housing 63
public housing 63
rent-to-income ratios 68
social assistance 64–5, 70–2, 81
social housing 61, 63–4
Canada, housing allowances
Allocation Logement (AL) 72, 73, 80
classic allowances 66–8, 75, 77
comparison with other countries 270–5
eligibility 62, 66, 74, 80
expenditure and mean benefit 75–7
impact of 72–7
participation rates 72–5
policy debates 78–9
portable rent supplements 70
portable shelter allowances 78
reform 79–80
refundable tax credits 70
rent supplements 65–6, 68–70, 74, 77, 79
role and design 65–72
shelter housing allowances 70–2
Castles, F.G. 40
central and eastern Europe 5, 252–8, 262–3
Czech Republic see Czech Republic
Estonia 256–8, 262
international comparison 258–63
Slovakia 254–6, 261
Commonwealth-State Housing Agreement (CSHA) 21
conservative welfare regimes 13, 265, 266, 268
see also France; Germany
consumer choice 4, 8
controllability of housing allowance
expenditure 276–7, 279
cooperative housing 266
core variables in entitlement calculation 6–8
Czech Republic
homeownership 240
housing affordability 243
housing allowances see Czech Republic, housing allowances
housing cooperatives 239–40
housing policy during transition 240–3
market rental sector 241, 243, 251–2
privatisation 240
rent regulation/deregulation 240–3, 251
rent-to-income ratios 248
social protection system 244–5
state rental housing 239, 240
subsistence level 245–6
tenure structure 241, 267
Czech Republic, housing allowances
calculation 246–7
comparison with other CEE countries 259
comparison with other welfare states 270–5
eligibility 254–5, 259, 260
non-take-up 249–50
rent allowance 244
D
de Leeuw, F. 92
demand-side assistance 1
demographic trends 4
Devine, D. 93, 94
disincentives to work 10, 206, 277–8
Donovan, K. 68
Downs, A. 269, 279
Driant, J.-C. 146, 150, 151, 152
dualist rental systems 267
E
economic recession 11
Britain 112, 120
Canada 63
eligibility for housing allowances 269–70
(p.291) Australia 20, 21–2, 33
Britain 114
Canada 62, 66, 74, 80
Czech Republic 254–5, 259, 260
Estonia 259, 262
France 147
Germany 159
Netherlands 196
New Zealand 45
Poland 259, 260–1
Slovakia 259, 261
United States 88
Elsinga, M. 279
Enqvist, C. 219, 229
Enström, C. 228
entitlement calculation 6–8
entry thresholds 7
Esping-Andersen, G. 12, 13, 265, 266, 267
Estonia, housing allowances 256–8, 259, 262
Evans, S. 34
ex ante housing allowances 281–2
ex post housing allowances 281
F
Fack, G. 143, 148, 149, 154
Feins, J. 94, 96
Ferguson, G. 40
Finkel, M. 69
Fischer, W. 87, 90
France
disincentives to work 153
homeownership 138, 145, 146
household income growth 135–7
housing affordability 150
housing allowances see France, housing allowances
housing standards 149–50
housing tenure 136–8, 267
inflation 154
low-income households 138, 151, 152
poverty 146
rent-seeking behaviour 154
rental housing sector 150–1
social welfare 138–42, 143
work disincentives 153
France, housing allowances
Aide Personalisée au Logement (APL) 143, 144, 153
Allocation de Logement Familiale (ALF) 143, 144, 153
Allocation de Logement Sociale (ALS) 143, 144, 153
bricks-and-mortar subsidies 146
calculation 148–9
comparison with other countries 270–5
eligibility 147
expenditure 147–9
housing capital subsidies 147–8
impact of 149–53
income-related 142
mortgage interest tax relief 147
origins and rationales 142–3
personal housing allowances 146–7
Prêt Aidé à l’Accession à la Propriété (PAP) 146, 147
Prêt Locatif Aidé (PLA) 146, 147
recipients 143–6
fraud 206–7
Führer, K. 162
G
Galster, G. 95
Germany
Arbeitslosengeld II 161, 170–1, 173, 185, 186–7
Hartz reforms 170
homeownership 163
housing allowances see Germany, housing allowances
housing consumption 160, 184
housing market liberalisation 164
housing policy 159
housing shortages 162, 182
housing tenure 267
rent ceilings 173
rental burden 163–4
social housing 159, 163, 181–3, 184
social segregation 176–8, 185
social welfare 162, 170–5
state-controlled housing sector 161
work incentives 185
Germany, housing allowances
Arbeitslosengeld II, housing benefit 172–4, 180
comparison with other countries 270–5
impact of 175–8
pass-through tax exemptions 162
policy debates and reform 178–85
Wohngeld 164, 180, 181, 182, 183
eligibility 159
entitlement calculation 165–9, 185–6
expenditure 159–60
history 161–7
for homeowners 168, 170, 186
impact of 175–6
policy debates and reform 178–85
rent ceilings 168, 169
take-up rate 175–6
Wohngeld tables 165–6
Gibb, K. 281
Gibbs, I. 118
Great Britain see Britain
Grigsby, W.G. 208
Hall, J. 32
Harloe, M. 268
Hawke, Bob 20
Hegedus, J. 5
Hills, J. 113
homeownership 266
Australia 18, 24
Britain 107
Czech Republic 240
France 138, 145, 146
Germany 163
Netherlands 199
New Zealand 39, 40, 55
household contribution rate 7, 9
housing affordability 5, 6, 268, 278
Australia 25–8
Britain 109
Canada 61–2, 63–4
Czech Republic 243
France 150
Netherlands 195, 196
New Zealand 41, 42, 54, 55
United States 93–4, 96
housing associations
Britain 108
Netherlands 194, 195, 204, 205, 209
Housing Benefit 111
design 112–14
entitlement calculation 112–14
fraud and error 123–4
recipients 117–18
role and impact 114–19
take-up rate 118
Housing Choice Voucher programme 96, 269, 280
affordability, effects on 93–4
economic self-sufficiency 95–6
eligibility 88
housing quality 91–3
impacts 90–6
neighbourhood quality and property values 94–5
programme design 89–90
success rates 91
housing consumption 5–6, 207, 278
housing expenditure ceilings 9–10
housing gap schemes 6–7, 9, 45, 278, 281
housing vouchers 279–82
Welfare-to-Work Voucher (WtWV) experiment 91, 94, 95
Howenstine, E.J. 6
Huber, B. 180
Hulse, K. 278
Hunter, G. 68
I
income package 272–4
income-related housing allowances 3–4, 6, 8, 10–11, 267
Income Support for Mortgage Interest (ISMI) 105, 112, 119
indexation of benefits 80, 277
J
Jacquot, A. 146, 149
Jaedicke, W. 179
Jobseeker’s Allowance (JSA) 106, 113, 274
K
Katz, B. 97
Kemeny, J. 266, 267
Kemp, P.A. 118, 206
Kennedy, S. 93–4
Kewley, T.H. 19
Kofner, S. 184
L
Laferrère, A. 147, 148, 154
Lapointe, L. 63
le Blanc, D. 147, 148, 154
Lee, C.-M. 95
Leeper, G. 20
Leger, M. 93–4
liberal welfare regimes 12, 265, 266, 267, 268, 269
Lincot, L. 150
Louvot, C. 147
M
Malpass, P. 108
Manitoba 66, 70, 72, 80
Manitoba Shelter Benefit (MSB) 74
Marês, P. 249
McClure, K. 93, 96
McGough, D.T. 92
means-tested housing allowances 8, 11, 87, 269
Mills, G. 91, 95
minimum contribution rates 7, 9
moral hazard 8–10, 206–7
mortgage income tax deduction 88
mortgage interest payments (MIP) 119–21
mortgage interest tax relief
Britain 108, 115, 121
France 147
Murphy, L. 46, 49
N
National Assistance 109–10
national housing allowance schemes, lack of 4–5
(p.293) National Insurance 109–10
neo-liberalism 267, 269
net replacement rate 273, 274, 275, 282–3
Netherlands
commercial rental sector 196, 201
disincentives to work 206
economic recession 199
expenditure control 203–4
homeownership 199
housing affordability 195, 196
housing allowances see Netherlands, housing allowances
housing associations 194, 195, 204, 205, 209
housing policy 194–6, 207–8
housing tenure 267
poverty trap 202, 204, 206
rent policy 194, 201–2, 204, 209
rent regulation 193, 195, 206, 209
rent-to-income ratios 199
social mix in neighbourhoods 196–7
social rental sector 193, 194, 195, 196, 199, 201
work disincentives 206
Netherlands, housing allowances
calculation 197–8
comparison with other countries 270–5
design dilemmas 203–8
developments (1975–2005)) 196–202
eligibility 196
entitlement 197–201
future challenges 208–10
implementation 201–2
moral hazard and fraud 206–7
non-take-up 198–9
rent supplement 202
transparency of scheme 210
New Zealand
capitalisation of family benefit 39, 40, 42
demographic changes 56
disincentives to work 45
ethnic groups 40, 41, 43, 56
homeownership 39, 40, 55
Homestart 42
housing affordability 41, 42, 54, 55
housing allowances see New Zealand, housing allowances
Housing Corporation 39, 42, 43, 44, 45
Housing New Zealand Corporation (HNZC) 48
Housing New Zealand (HNZ) 45, 48
housing policy 39, 42, 54–6
housing tenure 267
Māori population 40, 56
National Housing Strategy 54–6
Pacific peoples 56
poverty 48
social housing 39, 40, 43, 49, 55–6
social welfare 41
structural reforms 41–2
taxation 41, 42
unemployment 41
welfare reform 278
work disincentives 45
New Zealand, housing allowances
Accommodation Benefit 43
Accommodation Supplement 44, 45–6
analysis 50–4
eligibility 45
expenditure 49–50
impact of 51–3
recipients 46, 47
tenure of recipients 55
comparison with other countries 270–5
future role 54–6
impact of 45–8
income-related rents 48, 49
policy debates and reform 48–54
role and design after 1992 reforms 43–5
Newman, S.J. 88
Niner, P. 113
Nixon, Richard 88
Nordvik, V. 206
Norway 206
O
Ong, P. 95–6
Ontario 63, 64, 70, 74
over-consumption 9, 154, 207–8
P
Patterson, R. 94, 96
Pierson, P. 8, 279
Poland, housing allowances 252–4, 259, 260–1
poverty trap 10, 20, 277
Prêt Aidé à l’Accession à la Propriété (PAP) 146, 147
Prêt Locatif Aidé (PLA) 146, 147
Priemus, H. 11, 276
private rental sector 266, 267
Australia 21, 27, 29, 30
Britain 107–8, 126–8
Prosser, B. 20
Pruitt-Igoe, St Louis 88
public expenditure as proportion of GDP 266
public housing sector
Australia 21, 23–4, 28, 29
Canada 63
United States 88
Purju, A. 257, 258
Q
Quebec 66, 70, 72, 73, 80
R
recession 11
Britain 112, 120
Canada 63
Rein, M. 115, 272
(p.294) Rent Assistance 32–3, 34
eligibility 20, 21–2, 33
expenditure calculation 22–3
impact of 25–8
payment calculation 22
recipients 24–5, 26, 31
role and design of 21–4
rent burden 279
rent ceilings 9
rent inflation 279, 281
Rhodes, D. 126
Rieg, C. 150, 151, 152
Riege, M. 182
Roberts, S. 127
Robinson, R. 1
Rose, A. 69
Rugg, J. 126
S
Sard, B. 96
Saskatchewan 66, 67–8, 70, 72, 74, 80
Sewell, J. 69
Slovakia, housing allowances 254–6, 259, 261
social assistance 2, 270
Australia 19
Britain 106–7, 109–10, 111, 274
Canada 64–5, 70–2, 81
Czech Republic 244–5
European Union 141–2
France 138–42, 143
Germany 162, 170–5
New Zealand 41
Sweden 222–3
United States 88–90
social democratic welfare regimes 13, 265, 266, 268
social housing sector 266, 267, 268, 269
Australia 17, 21, 30
Britain 125–6
Canada 61, 63–4
Germany 159, 163, 181–3, 184
New Zealand 39, 43, 55–6
social risks 268–70
social welfare see social assistance
socio-economic trends 4
Spicker, P. 138
Stephens, M. 118
Stephens, R. 46
Stern, V. 182
Steuerle, C.E. 280
subsidy rate 278–9
supply-side subsidies 1, 268
Susin, S. 95
Sweden
housing allowances see Sweden, housing allowances
housing consumption 228
housing tenure 267
overcrowding 231
social assistance 222–3
Sweden, housing allowances comparison with other countries 270–5
development of 215, 216–22
eligibility 217, 223–4, 227–8
entitlement calculation 224–6
expenditure 218–19, 229
family grants 217
households with children 217–19, 223–6, 229–33
households without children 219
impact of 228–9
low-income households 217
parents, non-resident 217, 232
pensioners, housing supplement 219, 221–2, 226–8, 233
policy debates and reform 229–33
role and design 223–8
T
Teller, N. 5
Théret, B. 138, 139
Toronto 79
transition economies, central and eastern Europe 5, 252–8, 262–3
Czech Republic see Czech Republic
Estonia 256–8, 262
international comparison 258–63
Slovakia 254–6, 261
Turner, B. 228, 279
Turner, M.A. 97
U
uncontrollability of housing allowance expenditure 276–7, 279
unemployment trap 10, 32, 277
United Kingdom see Britain
United States 269
housing affordability 96
housing allowances see United States, housing allowances
housing policy 87–8
housing tenure 267
Jobs-Plus initiative 99
low-income households 87–8
Moving to Opportunity (MTO) 94–5
public housing 88
rent burdens 93–4
social welfare 88–90
Welfare-to-Work Voucher (WtWV) experiment 91, 94, 95
United States, housing allowances comparison with other countries 270–5
Experimental Housing Allowance Program (EHAP) 92, 269, 279
housing vouchers 96, 269, 280
(p.295) affordability, effects on 93–4
economic self-sufficiency 95–6
eligibility 88
housing quality 91–3
impacts 90–6
neighbourhood quality and property values 94–5
programme design 89–90
success rates 91
policy debates, current 96–8
upmarketing 9, 154, 281
V
Van der Schaar, J. 194
Van Gils, G.P. 206, 207
Van Ryzin, G. 95
Van Steen, G. 206
variables in entitlement calculation 6–8
vouchers 279–82
Welfare-to-Work Voucher (WtWV) experiment 91, 94, 95
W
Walker, B. 113, 126
Wang, H. 18, 24
Weaver, R.K. 277
Weicher, J. 87
welfare benefit indexation 80, 277
Welfare-to-Work Voucher (WtWV) experiment 91, 94, 95
Wilcox, S. 271
Wohngeld 164, 180, 181, 182, 183
eligibility 159
entitlement calculation 165–9, 185–6
expenditure 159–60
history 161–7
for homeowners 168, 170, 186
impact of 175–6
policy debates and reform 178–85
rent ceilings 168, 169
take-up rate 175–6
Wohngeld tables 165–6
work disincentives 10, 206, 277–8
Wörz, M. 179
Wulff, M. 24, 34
Z
Zoyem, J.-P. 140–1