1. www.iut.nu Side Event Affordable social and private rental housing – a necessity for Europe and beyond Habitat III Regional Meeting 16-18 March in Prague Sven Bergenstråhle President International Union of Tenants svenbergen@telia.com Affordable housing – how?

2. www.iut.nu Sven Bergenstråhle The need of affordable housing Access to affordable housing is one of the fundamental pillars in well- functioning democratic societies. And it is possible through Lower construction prices An active land policy Housing subsidies that lower rents and prices A tenure neutral housing policy Rent control mechanisms

3. www.iut.nu Lower construction prices   Use of pre-fabricated housing elements (kitchen, bathroom, etc.) and put them together on the site – like Lego   Standardized types of dwellings/apartments in different sizes   Use of and re-use of the same construction drawings by architects   The facades must of course differ. No boring housing areas   Standardized demands on quality and design for housing in the whole country ……..   Competition among construction companies – the company with the lowest price for good quality housing gets the order Sven Bergenstråhle

4. www.iut.nu An active land policy   Local authorities should have an active land policy   We build not only houses but societies   Planning is a key instrument for social inclusion   Skyrocketing prices of land - a big problem   Local authorities should regulate usage and decide tenure forms in different parts of the community/city   Location value tax (LVT) – a tax that recovers the value of properties not created by landowners Sven Bergenstråhle

5. www.iut.nu The need of housing subsidies o o The market alone cannot solve the housing problems for many o o Social housing, housing allowances and other forms of subsidies and adapted housing are necessary to guarantee decent housing for all o o Subsidies to provide affordable housing should not be able to be capitalized. o o Subsidies without conditions, e.g. mortgage interest deduction, on a “free” market, stimulate speculation, contribute to increased prices on homes and construction, push up rents and decrease housing affordability especially in regions with high migration. o o The aim should be that prices and rents are lowered in an amount that corresponds to the value of the subsidies. Sven Bergenstråhle

6. www.iut.nu A tenure neutral housing policy   Tenure neutral housing policies will contribute to more stable housing markets (according to research)   The state should not favour any tenure – the choice of tenure should be the household’s   Big subsidies to house-owners have caused financial crises   The choice whether to rent or to own your home should be possible, and a right, in all countries.   The rental market should consist of at least 1/3 of the whole housing market Sven Bergenstråhle

7. www.iut.nu Rent control mechanisms o o Safeguard security of tenure o o Prevent rents to rise due to housing shortage and increased demand o o Competition among households seeking the same kind of housing causes rent hikes o o Market rents in new leases is an obstacle to mobility o o In well organized and regulated rental markets private landlords still could make profits Sven Bergenstråhle

8. www.iut.nu To summarize   To get affordable housing we need Lower construction prices An active land policy Housing subsidies that lower rents and prices A tenure neutral housing policy Rent control mechanisms Thank you for listening! Sven Bergenstråhle