Financing and Delivering Social Housing: challenges, causes and solutions. Dr Michelle Norris School of Social Policy, Social Work and Social Justice University College Dublin and Chair of the Housing Finance Agency (PLC) Paper presented European Commission and ESRI Housing Conference, Dublin, 6 November 2015

Focus of Presentation 1) Problems 2) Causes  Changing context  Historic policy choices  Recent policy choices  Recent implementation problems 3) Solutions

Historic Policy Choices Social Housing Finance Model

Long Term Policy Choices Private Renting as de facto social housing

Recent Policy Choices. Return to Borrowed Social Housing Finance but only for Housing Associations Reform of funding model

Recent Implementation Problems 1) Limited take up of borrowed finance: ▪Housing Finance Agency – €500m available – 25 year loans, 3.25% fixed. ▪Repaid using a guaranteed revenue subsidy ▪ Fifteen housing associations are eligible to borrow, only seven have done so ▪Very little borrowing for new building in Dublin and other cities. 2) Severe problems in Accessing Private Rented Housing for use as Social Housing Limited appetite among policy makers for rent certainty Additional subsidies for landlords are likely to be captured in increased rents – research evidence indicates between 35% and 75% Increased rent supplement may disadvantage low paid private renters and students

Solutions Build more social house building, particularly in cities: 1) Get local authorities involved again  Enable them set up ‘arms length’ bodies to access borrowing  Borrow on balance sheet for this purpose – need not be ‘additional’.  Decouple housing development and management/ ownership  2) Better and more selective support for housing associations  Reform financing model  Support financial management skills acquisition  Concentrate funding on associations which deliver and roll out regulation  This will encourage amalgamations/ partnerships 3) Diversify sources of supply and finance  Real Estate Investment Trusts (REITs) and PPPs  Pension funds, credit unions, banks  Competitive tendering for subsidy package