This paper explores the reasons why the UK has ended up with such an extensive system of intervention in the housing market, particularly through providing subsidised council and housing association housing, and through Housing Benefit. The most important justification which remains valid is to enable those who would not otherwise be able to do so to afford to live in housing of acceptable quality, and to do so while avoiding the area polarisation which would result from the operation of the free market. However, the way in which social housing and subsidies operate in Britain today often reinforces rather than counters social polarisation and divisions. Looking ahead, as society becomes more affluent, including in an optimistic scenario those with low incomes, these problems may become even more acute as housing quality and consumer choice become more important. Systems of rationed provision with little tenant choice or control and no trade-off between cost and quality or location will look increasingly outmoded. The paper explores what could be done to reinvent the way in which we subsidise housing.
Get full access to this article
View all access options for this article.
References
1.
Beveridge, W.H. (1942) Social Insurance and Allied Services. Cmnd 6404 . London: HMSO.
2.
Burrows, R. and Wilcox, S. (2000) Half the Poor: An Analysis of Low Income Home Ownership . London: Council of Mortgage Lenders .
3.
Dean, J. and Hastings, A. (2000) Challenging Images: Housing Estates, Stigma and Regeneration. Bristol: Policy Press .
4.
Detr (Department Of The Environment, Transport And The Regions) (1998) English House Condition Survey1996. London: The Stationery Office .
5.
Detr (Department Of The Environment, Transport And The Regions) (2000a) Quality and Choice: A Decent Home for All—The Housing Green Paper. London: The Stationery Office.
6.
Detr (Department Of The Environment, Transport And The Regions) (2000b) Our Towns and Cities: The Future-Delivering an Urban Renaissance. Cm 4911London: The Stationery Office.
7.
Dss (Department Of Social Security) (2000) Households Below Average Income: A Statistical Analysis, 1994/5-1998/9 . London: The Stationery Office .
8.
Gibb, K. and Miinro, M. (1999) Housing Finance in the UK, 3rd edn. Basingstoke: Macmillan.
9.
Glennerster, H., Hills, J. and Travers, T. with Hendry, R. (2000) Paying for Health, Education and Housing: How the Centre Pulls the Purse Strings. Oxford: Oxford University Press.
10.
Glennerster, H., Lupton, R., Noden, P. and Power, A. (1999) Poverty, social exclusion and neighbourhood: studying the area bases of social exclusion. CASEpaper 22, Centre for Analysis of Social Exclusion, LSE.
11.
Hills, J. (1991) Unravelling Housing Finance: Subsidies, Benefits and Taxation. Oxford: Oxford University Press.
12.
Hills, J. (1998) Housing: a decent home within the reach of every family?, in: H. Glennerster and J. Hills (Eds) The State of Welfare: The Economics of Social Spending , 2nd edn, pp. 122-188. Oxford: Oxford University Press.
13.
Hills, J. (2000) Reinventing Social Housing Finance. London: Institute for Public Policy Research.
14.
Hills, J. and Lelkes, O. (1999) Social security, selective universalism and patchwork redistribution, in: R. Jowell, J. Curtice, A. Park and K. Thomson (Eds) British Social Attitudes: The 16th Report, pp. 1-22. Aldershot: Ashgate .
15.
Hirschman, A.O. (1970) Exit, Voice and Loyalty: Responses to Decline in Forms, Organisation and States. Cambridge, MA: Harvard University Press.
16.
House Of Commons Social Security Committee ( 2000) Housing Benefit. HC (99-00) 385-1. London: The Stationery Office.
17.
Ippr (Institute For Public Policy Research) ( 1999) 40% don't want councils to run social housing. press release , July, London, IPPR.
18.
Ippr Social Housing Forum (2000) Housing United: The Final Report of the IPPR Forum on the Future of Social Housing. London: IPPR.
19.
Jowell, R., Curtice, J., Park, A. and Thomson, K. (Eds) British Social Attitudes: The 16th Report. Aldershot: Ashgate.
20.
Kemp, P. (1998) Housing Benefit: Time for Reform. York: Joseph Rowntree Foundation.
21.
Kemp, P. (2000a) 'Shopping Incentives' and Housing Benefit Reform . London: Chartered Institute of Housing.
22.
Kemp, P. (2000b) Images of council housing, in: R. Jowell, J. Curtice, A. Park ET Al. (Eds) British Social Attitudes: The 17th Report, pp. 137-154. London : Sage.
23.
King, P. (1999) Calling time on housing benefit, HousingToday, 7 October.
24.
Lupton, R. and Power, A. (forthcoming) Social exclusion and neighbourhoods, in: J. Hills, J. Le Grand and D. Piachaud (Eds) Understanding Social Exclusion. Oxford: Oxford University Press.
25.
Marsh, A. and McKay, S. (1993) Families, Work and Benefits. London: Policy Studies Institute.
26.
Paterson, L. (forthcoming) The politics of social welfare, in: A. Brown, J. Curtice , K. Hinds ET AL. Scottish Social Attitudes . Edinburgh: Edinburgh University Press.
27.
Power, A. (1993) Hovels to High-rise: State Housing in Europe since 1850. London: Routledge.
28.
Seu (Social Exclusion Unit) (2000) National Strategy for Neighbourhood Renewal: A Framework for Consultation . London: Cabinet Office.
29.
Wilcox, S. (1999) Housing Finance Review 1999/ 2000. York: Joseph Rowntree Foundation.
30.
Yates, J. (1989) Housing policy reform: a constructive critique, UrbanStudies, 26, pp. 419-433.
