Institutional structure of social housing finance in the UK: Recent developments

Abstract

It is argued that social housing in the UK currently faces affordability and investment problems. Rental payments are highly dependent on housing benefits and more investment, with higher rent levels and lower direct subsidy, requires more expenditure on housing benefits if affordability problems are to be avoided. The increasing role of private finance in funding housing association developments is reviewed. There is an examination of the institutional relationship between social housing expenditure and the public deficit. The case for new forms of social housing organisations which are less restricted by public expenditure controls is examined. It is argued that new social housing institutions will contribute more to the resolution of the investment than the affordability problem. The relationship between finance and social purpose is explored. It is concluded that there is a continuing need for redistributive measures if social housing is to achieve its essential purposes.