Housing

Question 1

What is Housing?

Answer 1

In term of people’s welfare and well-being, having a roof over their head.

Question 2

What is the Concept of ‘Home’?

Answer 2

The idea of home is universally and instinctively understood.
Home creates our own self identity – it’s where we are most ourselves.

sociologist Giddens (1991) suggests that home is the main place where social life is produced and sustained

In the 21st-century, the digital revelation and invention of the Internet has led to more home-working and home-banking, and leisure like home cinemas.

Question 3

What does The Universal Declaration of Human Rights (1948) say about Housing?

Answer 3

Article 25: everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care; and the right to security in the event of unemployment, sickness, disability and old age

Article 12: home should be where citizens must be free from interference of their privacy. The home is typically the focal point of family life

Question 4

Why is Housing Important for the Government?

Answer 4

Because of its importance, housing policy is naturally, therefore, a major concern of government.

However it is often suggested that housing differs from the other political welfare, because such a high proportion of it is supplied and distributed through the private sector. In most countries, it is common to talk of the housing market from the housing service, because it is usual for between 60% and 80% of housing to be supplied through private market

Question 5

Contrary t some theorists, why is housing central to scial policy?

Answer 5

Although housing is seen by some theorists being at the margins of social policy, particularly by some theorists in nations where owner occupation dominate, such a fee was flawed.

Not only is access to housing central to individual being, but the very nature of the housing system itself has an impact on how we live our lives, and how we plan our futures, on our economies and, perhaps, on the very nature of welfare state.

Question 6

What is meant by a Tenant?

Answer 6

A person who occupies land or property rented from a landlord.

Question 7

Who is a Local Authority Tenant?

Answer 7

A person occupying land from local authorities. Local authorities are registered providers with the Homes and Communities Agency.

In England and Wales, local housing authorities are the unitary authorities, district councils, the Council of the Isles of Scilly, the London Borough councils, the Common Council of the City of London and, until its abolition at the end of March 1986, the Greater London Council.

Question 8

Who is a Private Tenant?

Answer 8

A person occupying land from housing in the private sector.

Where the term ‘private sector’ is used in housing policy and housing statistics, it is generally meant “private housing” sector or non-social housing sector ie owner-occupied dwellings and those rented privately, including those that go with a job or business and not those owned by housing associations

Question 9

What is the term ‘Repossession’?

Answer 9

Repossession is a term used to describe when. an actual owner takes back from the borrower an object that was rented or leased, or was borrowed, either with or without compensation, or. when a lienholder takes possession of an item from its registered owner that was used as collateral for a loan.

Question 10

Who is a Landlord?

Answer 10

Anyone who rents out land, a building, or accommodation.

Question 11

Who are Registered Social Landlords?

Answer 11

Not-for-profit housing providers approved and regulated by Government through the Homes & Communities Agency. The vast majority of Registered Social Landlords are also known as Housing associations.

Question 12

What are the 3 Processes of Change in Housing?

Answer 12

Privatisation
Residualisation
Financialisation

Question 13

What is Privatisation?

Answer 13

The ways in which publicly owned and/or provided services are passed over to private ownership/provision

Question 14

What is Residualisation?

Answer 14

The ways in which services and provision previously open to all citizens have become targeted only on those who can show a demonstrable need.

Question 15

What is Financialisation?

Answer 15

The ways in which the financial sector (markets and products) have become increasingly embedded in the economy

Question 16

What are the Issues of Financualisation to do with?

Answer 16

Asset-based dis/welfare, spatial inequalities, wealth accumulation, income generation, in/security in older age

e. g.
- Bodlewell House, Sunderland, 3 Bed Flat 2017: £26,000
- Trellick Tower, London, 3 Bed Flat in 2017: £640,000

Question 17

In The Beveridge Report there are Five Giants to be slain, on the road to post-war reconstruction (the re-buildup of society). What are they?

Answer 17

Want
Ignorance
Disease
Squalor
Idleness

Question 18

What does ‘Want’ refer to, as a Giant to be Slain?

Answer 18

Providing sickness and unemployment benefits

Question 19

What does ‘Ignorance’ refer to, as a Giant to be Slain?

Answer 19

Lack of Education leads to Ignorance.

Question 20

What does ‘Disease’ refer to, as a Giant to be Slain?

Answer 20

The Introduction of the NHS - free healthcare for all

Question 21

What does ‘Squalor’ refer to, as a Giant to be Slain?

Answer 21

Building decent homes in working class areas

Why they did: Most of Britain still had slum areas and overcrowding was a serious problem made worse by bomb damage during the war.

What they did: To deal with the problem of squalor the government concentrated on the building of decent homes for the working class after the war. The government aimed at building 200,000 houses a year and many of these were prefabricated houses which were assembled quickly onsite. The New Towns Act passed in 1946 laid the plans for 14 new towns in Britain, including Glenrothes and East Kilbride in Scotland.

How well it did: However, the Labour Government’s record in this area does not compare favourably with pre-war levels of house building or with the achievements of the Conservatives in the 1950s. There was still a serious shortage at the end of their period in office.

Question 22

What does ‘Idleness’ refer to, as a Giant to be Slain?

Answer 22

Looks at unemployment

Question 23

What is meant by Post Communist Housing?

Answer 23

One of the most dramatic political change in recent years was the collapse of the USSR and other European communist states. Under the communist system, a large share of housing production was organised and managed by the state- although there were considerable variations in the balance of state & private housing (eg in Hungary, nearly 80% of housing was self-built, using own resources & labour, as private building firms were not allowed).
Generally, the state provided housing at very low costs, and cheap food; but in a very low-wage economy. In fact, housing was traded on a massive scale through a black market of cash and ‘hard currency’ deals.
Nowadays, countries such as Estona, Hungary and Slovakia have home-ownership rates in excess of 90%

Question 24

What is the 1919 Town and Country Planning Act (Addison Act) ?

Answer 24

The Housing, Town Planning, & country planning. Act 1919 (chapter 35) was also known as the Addison Act, after Minister of Health, Dr. Christopher Addison, the then-Minister for Housing.

The Act followed the 1917 Tudor Walters Committee Report into the provision of housing in the UK. This was partly a response to the shocking lack of fitness amongst many recruits during World War One, attributed to poor living conditions.

The end of WW1 in 1918 created a huge demand for working-class housing in towns throughout Britain. The 1919 Act promised government subsidies to help finance the construction of 500,000 houses within three years. As the economy rapidly weakened in the early 1920s, however, funding had to be cut, and only 213,000 homes were completed under the Act’s provisions.

Question 25

What is the Privatisation and the Housing Act 1980?

Answer 25

It gave 5 million council house tenants in England and Wales the Right to Buy their house from their local authority. The Act came into force on the 3 October 1980 and is seen as a defining policy of Thatcherism.

The Conservative party under Margaret Thatcher had promised in their manifesto for the general election of 1979 to give council house tenants the ‘legal right to buy their homes’

Gave Local Authority tenants the ‘right to buy’ at a discounted price but restricted LA revenue for rebuilding

Gave Local Authority tenants security of tenure

Removed security of tenure for new private tenants

Made repossessions simpler for landlords

Created ‘assured’ and ‘shorthold’ private tenancies and relaxed rent regulation

Question 26

What is the Housing and Planning Act 1986?

Answer 26

Allowed Local Authorities to transfer housing stock to other landlords, such as a Registered Social Landlord (RSL).

Question 27

What is the Housing Act 1988?

Answer 27

Gave Local Authority tenants ‘tenants choice’ re. transfer process (Large Scale Voluntary Transfers; Tenants’ Co-ops or private landlords)

Established Housing Action Trusts (HATs)

Further deregulation of the private rented sector

It governs the law between landlords and tenants. The Act introduced the concepts of assured tenancy and assured shorthold tenancy. It also facilitated the transfer of council housing to not-for-profit housing associations.

Question 28

How does the Mixed Economy’s Balance Change (how does the mixed economy shift over time)?

Answer 28

It shifts from:

1. welfare services based on ability to pay (pre Beveridge) to
2. collective provision (post WW2) to
3. marketisation (1980s onwards)

Question 29

What does each political party refer housing as?

Answer 29

A local need

Question 30

What were the policy aims of the Conservative Party, and when did this happen?

Answer 30

Conservative policy aims in the 1980-90s

• reduce public expenditure
• reduce the power of Local Authorities
• increase individual responsibility through home ownership

Question 31

What were the policy aims of the Labour Party, and when did this happen?

Answer 31

Labour aims 1997-2010

Asset-based welfare

Increasing construction

Question 32

What were the policy aims of the Coalition Government, and when did this happen?

Answer 32

Coalition aims 2010-2015

Crisis management

Reduction in housing benefit (5m households in receipt in 2011)

Question 33

Why is state intervention needed in housing, in terms of legal framework?

Answer 33

Housing is historically a commodified social good - property relations are the basis of civil rights
BUT
State intervention is needed to manage the conflict between civil rights to property and social rights to housing as a basic need (legal framework)

Question 34

Why is state intervention needed in housing, in terms of economic management?

Answer 34

Housing is central to the economy - labour productivity and mobility; wage demands and social reproduction
BUT
State intervention is required to ensure that affordable, adequate housing is available where labour is needed and to prevent inflation of house prices which leads to demands for higher wages (economic management)

Question 35

Why does Housing Policy matter?

Answer 35

Housing has long been a “wobbly pillar” of the welfare state as frequently privately provided

UK has a deeply dysfunctional housing system in the UK

Driving inequality as greater wealth accumulates for some while others homelessness or unsatisfactorily housed.

Need long-term cross party commitment to overcome entrenched problems

Question 36

What are the Types of Housing/ Form of Tenure?

Answer 36

Owner Occupied
Renting (Public and Private)
Local Authority
Housing Association
Leaseholder
Social Housing

Question 37

What is Owner Occupied Housig?

Answer 37

Owner occupiers either own their home (and the land on which is built), or are in the process of buying it using a special form of loan called a mortgage.

Strong property rights or a feature of most democracies, and as a consequence, homeowners have considerable autonomy in the running of their homes, and it is difficult to remove someone’s right to occupy or buy the property as a consequence – this at considerable security for homeowners, but also creates rigidity in the housing market.

Owner-Occupiers are responsible for the upkeep of the property and can be exposed to considerable financial risk as a consequence.

Similarly, if an owner occupier is in the process of paying the mortgage on the property, then a failure to make repayments on that loan can lead to them losing the property to the lender.

Question 38

What is Rented Housing?

Answer 38

Those who rent the rooms, flat or house from a landlord who owns the property are known as tenants. Landlord to come in many forms and can be the state, a private individual, a company or a non-government organisation. For tenants, the payment of a weekly rent to the landlord gives the tenant legal occupation look at the dwelling in a package of rights and responsibilities Those who rent the rooms, flat or house from a landlord who owns the property are known as tenants. Landlord to come in many forms and can be the state, a private individual, a company or a non-government organisation. For tenants, the payment of a weekly rent to the landlord gives the tenant legal occupation look at the dwelling in a package of rights and responsibilities

Question 39

What is Private Rented Housing?

Answer 39

Usually unsubsidised and fully commercial in pricing, effectively an adjunct of the homeownership market, with private property owners free to buy, sell or rent their properties with relatively few restrictions

Question 40

What is Public Rented Housing?

Answer 40

typically a residual state-run safety net for low income households, with rents subsidised by the state in order to keep them low or even to cover the cost entirely for some households. In addition, the state often supports those on low income via indirect subsidies for private renting in the form of housing allowances paid through the social security system.

Question 41

What is Local Authority Housing?

Answer 41

Local authorities (or housing authorities) are the main providers of social housing for people who cannot afford to buy their own homes. Local authority housing is allocated according to eligibility and need. Rents are based on the household’s ability to pay.

Question 42

What is Housing Association Housing?

Answer 42

a non-profit organization that rents houses and flats to people on low incomes or with particular needs. They are Registered Social Landlords.

Question 43

What is Leaseholder Housing?

Answer 43

This form of tenure usually exists when landlords building is split into multiple properties: a block of flats, for example. It’s such instances, the distinction can be drawn between the freeholder – who owns the building as a whole in the purity – and individual leaseholders had by long-term leases (99 years is common), which give them an ownership of, say, one of the flats in the apartment block. Typically, the leaseholder has responsibility for the upkeep of the internal aspects of the property, while the freeholder is responsible for communal areas (e.g. stairways, corridors) and the fabric of the building itself.

Question 44

What is Social Housing?

Answer 44

housing provided for people on low incomes or with particular needs by government agencies or non-profit organizations.

Question 45

What is the Rise & Decline of Social Housing?

Answer 45

Post WW1:
1919 Town and Country Planning Act (Addison Act) ‘Homes fit for heroes’ (but not ‘the poor’)
Local Authority rents higher than private rents to reflect higher quality of provision

Post WW2 reconstruction:
Slum clearance and state housing to meet the general need (i.e. quantitative and universal)

Social planning: housing provided in the ‘general interest’

(NB in 1951 there were only 13 million households compared to over 21 million in 2001)

Question 46

Do we still need Social Housing?

Answer 46

YES:
UK social housing broke link between poverty and material deprivation (Bradshaw, Stephens)

Lowest proportion of non-decent homes of all tenure (13%) (DCLG)

Cost-rents offered work incentives, avoid benefit traps (Fletcher)

Security of tenure or ‘lifetime tenancies’ offered household/family stability (Fitzpatrick)

NO:
But associated with poor quality local environment, nuisance (Lupton et al.)

Lack of choice (DCLG) and outcome (Lupton et al.)

Threats come from ‘affordable rent’ regime, Housing and Planning Act 2016, welfare reforms

Social to ‘affordable’ rents, pay to stay, greater investment in ownership options rather than renting, right to buy extensions/selling high value homes,

benefit caps

Question 47

What are the Types of Housing Systems?

Answer 47

Market vs Non-Market (Homeowning dominated)
Mixed/Plural System
State-Led Housing

Question 48

What is the Market vs Non Market System?

Answer 48

There homeowning dominated societies in which the majority of houses are private properties owned by individual citizens. In such systems, the housing market often acts as an important driver of the economy, with housing being a major focus of personal investment, and the key role of the state is to ensure the smooth running of the market and to stimulate its growth. However, the costs of purchasing houses are such that not everyone will be able to afford their own home or, or actually want to, so a significant proportion of the population must to rent homes. This type of housing system: the high income English-speaking nations; such as the UK, US and Australia (Kememy, 2005)

Question 49

What is the Mixed/Plural Housing System?

Answer 49

Here, owner occupation remains an important part of the overall picture, but it’s not such a driving force, and there is less pressure on who can afford to do so to buy their own home. Instead, both public and private renting play larger roles and although the two sectors are again clearly separated, they usually operate in the context of a more harmonised rent-setting system that is overseen by local authorities. This regulation of rents is one of the factors that gives renting a broader appeal and these countries. In other words the markets more heavily constrained in the systems and the states will extend beyond that the provider of perceptual housing as a supplement to a favourite privatised market. This system is commonly found in northern and western Europe.

Question 50

What is the State-Led Housing System?

Answer 50

The government took the lead role in building, allocating and maintaining housing.

Here the role of the private market was heavily constrained, and sometimes in principle, eliminated. The market mechanism was replaced with a bureaucratic approach.

This also meant little commercial construction, with house building largely undertaken by the state; families who were outside the state sector had no alternative other than to build their own.

This system almost completely disappeared following the collapse of the Communist bloc in Eastern and Central Europe. It was not filed in high income countries at all. However, its still broadly characterises the housing system in Cuba, for instance – although recent reforms have begun to significantly expand private ownership even here.

Question 51

What is the Role of the State in each Housing System?

Answer 51

The state plays an important role, but it different differs widely from that of market regulator and provider of last resort safety net through to main provider. Likewise, the role of the private market very steep, from dominant provider, service project provider to minority player. Significantly, these differing roles for the state of the market usually reflect different values and goals with regard to the role of the housing market. Whilst in essence, in-home dominated systems, the market is left operate relatively freely, because it as an important source of wealth and asset accumulation, in other systems, stronger restrictions are placed on the market in order to emphasise broader social concerns surrounding housing affordability

Question 52

How has the % share in housing tenure changed from 1914-2010?

Answer 52

1914: 10% / 1% / 0% / 90%
1939: 32% / 10% / 0% / 58%
1953: 32% / 18% / 0% / 51%
1971: 53% / 28% / 1% / 18%
1981: 60% / 27% / 2% / 11%
2001: 70% / 13% / 7% / 10%
2010: 69% / 8% / 10% / 13%

Owner Occupied/ Local Authority/ Housing Association/ Private Renting

Question 53

How has the Amount of GDP spent on Housing Development Changed over time?

Answer 53

Refer to pic on pg 9

Question 54

How has the Amount of GDP spent on Housing Development Changed over time, compared to EU countries?

Answer 54

Refer to pic on pg 10

Question 55

How has the number of Mortgage Loans changed over time?

Answer 55

Refer to pic on pg 10

Question 56

How has the house price to earnings ratio changed over time?

Answer 56

Refer to pic on pg 11

Question 57

How have Real house prices and net incomes changed over time?

Answer 57

Refer to pic on pg 11

Question 58

What schemes help meet the needs of housing?

Answer 58

Localism Act 2011
Welfare Reform and Work Act 2016
Budget Statements
‘Help to Buy’ Schemes

Question 59

What is the Localism Act 2011?

Answer 59

LA powers to determine rules for 
Rationing
Reducing tenancy
Terms to 2 yrs+
LAs can house homeless h/holds in private sector 

The act changed the powers of local government in England. The aim of the act is to facilitate the devolution of decision-making powers from central government control to individuals and communities.

Each English housing authority must have an “allocation scheme” for determining priorities. Reasonable preference should be given to groups such as the homeless and those living in unsanitary conditions but otherwise housing authorities may themselves decide who to support and the conditions of support. People subject to immigration control cannot be supported. The authorities’ duty to homeless people, who are not intentionally homeless, now ceases if they refuse reasonable accommodation.

The housing authorities must publish a “tenancy strategy” giving the types of tenancy provided, the circumstances under which they are granted, their length and the circumstances in which they may be extended. This section also includes many changes to tenancy law, to the financing of local authority housing and to the handling of complaints. Home Information Packs, which were required when selling a property, are abolished.

Question 60

What is the Welfare Reform and Work Act 2016?

Answer 60

Aims to reduce Housing Benefit payments (£24b in 2015) through rent reductions

Many people have criticised the bill, with some even going as far as to defining it as a “Pandora’s box for Britain’s poorest families”. The cuts to tax credits have been criticised for unfairly affecting the working poor, and a clause in the bill allows the benefits cap of £20,000 (£23,000 in London) to be reduced further, without any further consultation with Parliament (apart from the passage of the act through parliament), thus making those from larger families even worse off.

Question 61

How have Budget Statements helped meet housing needs?

Answer 61

It includes further restrictions for Housing Benefit

Question 62

What are ‘Help to Buy’ Schemes?

Answer 62

Schemes and subsidies for starter homes from 2013

With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Question 63

What are the Current Issues with Housing?

Answer 63

The Housing Problem
Failing housing system
Private rented sector does not meet needs of all
Limited access to social housing
Homeownership is unaffordable
Housing as a store of wealth leads to inequality
Low housing Supply/Overcrowding

Question 64

What is the Housing Problem?

Answer 64

In the absolute sense the basic human need for shelter defines the housing problem in terms of quantity and quality:

Is there enough housing to go round, and is it of a satisfactory standard?’
(Source: Malpass, P. and Murie, A. (1994) Housing Policy and Practice, Basingstoke, Macmillan, p3 and Murie (2012) )

Question 65

What is the History of the Housing Problem, cited in 1847?

Answer 65

It is an early attempt to publicise social statistics through the media to draw attention to social problems – in this case housing overcrowding – which has public health effects in addition to all the other elements of diswelfare

At the time, nearly one tenth of London’s population are one-room dwellers. This doesn’t necessarily one person for one room; it could mean a family varying from one to (a congregation of) 12 members. The tenth is not a submerged tenth, but a hard working, ill paying and forsaken tenth of London’s population.

This comes from Robert Williams’ 1847 pamphlet “The face of the Poor, The rent they pay and the evils they endure”

Housing is a Commodified Social Good

Commodified Good: A commodity at its most basic, according to Arjun Appadurai, is “any thing intended for exchange,” or any object of economic value.

Social Good: A social good is an act that benefits the largest number of people in the largest possible way, such as clean air, clean water, healthcare and literacy.

Question 66

What Policies help Solve the Housing Problem?

Answer 66

jsdidji

Question 67

Why is the house system seen as failing?

Answer 67

Rough sleeping increased 18% since 2016, and 170% since 2010.

4,751 were found sleeping out Autumn 2017 (DCLG)

Households accepted as homeless up 43% and in temporary accommodation up 60% since 2011 (House of Commons Library)

Question 68

What is meant by ‘Rooflessness’?

Answer 68

Being without any kind of shelter for all or most of the day

– People sleeping rough or having access to only a night shelter

Question 69

What is meant by ‘Houselessness’?

Answer 69

Having a temporary place to stay in institution or shelter
- reception centre for recently arrived immigrants, temporary accommodation for those recently released from prison, living in a hostel for homeless

Question 70

What is meant by ‘Living in Insecure Hpusing’?

Answer 70

Those of insecure tenancies or unsafe housing
- people renting properties without legal contracts, those housing is on safe from the threat of domestic violence, those staying temporarily with friends or family

Question 71

What is meant by ‘Living in Inadequate Housing’?

Answer 71

Those living in unfit or illegal housing
- people living in caravans that aren’t on legal sites, anyone living in makeshift housing, people living in extremely overcrowded housing, those in houses that failed to meet legal safety standards

Question 72

How does the Private rented sector not meet the needs of all?

Answer 72

27% of privately rented homes were ‘non-decent’, 38% of private lets include children (EHS, 2016/17).

Rents in England increased 16% 2011-2017 (ONS, 2017), real earnings increased 4% (ONS, 2017)

Question 73

How is there limited access to social housing?

Answer 73

1.2 million on local authority waiting lists

379,000 lettings during 2014/15 and falling – only 231,000 in 2016/17 (40% fall 2 years)

12,826 Right to Buy sales 2016/17 but only 41,530 ‘affordable’ starts (England) (DCLG)

Question 74

Is homeownership unaffordable?

Answer 74

35% of first time buyers had help from friends and family (up 21% 1994-5) and 10% used inherited money (up from 3% 1994-5)

72% first time buyers in 4th and 5th income quintiles (2015/16) - people getting houses are poorer

72% new buyers were couples (up 63% 1994-5) (DCLG 2016/17) - meaning they need two incomes to buy one house

Question 75

How does housing as a store of wealth lead to inequality?

Answer 75

Estimated £37bn flowed into London’s property market from overseas between 2006- 2013 (Atkinson)

£170bn of UK real estate held by more than 30,000 tax haven companies (Atkinson)

More prosaically, housing equity tied to pension planning, impact on incentives to downsize, buy to let and wealth inequalities.

Question 76

What is the connection between homeownershop and pensions?

Answer 76

Another key issue that lies at the heart of welfare state, especially in Europe, is the connection between homeownership and pensions

As homeowners gradually pay off their mortgages over around 25 years, they often have low housing costs in older age (as tenant keep paying rent to the landlord for their whole life)

Some argue that differences in the balance of the size of the homeowning/rental sectors across country impact demands for pension provision.

In homeowning societies, photos may accept lower levels of state pension because of their private assets. Kemeny (2005) Argued that homeowning societies tend to be ‘low-tax, low-spend’ welfare state.

Kemeny (2005) Argued that more rental based nations tend towards ‘high – tax, high – spend‘ welfare states

In countries that are in the mixed/plural category, a higher level of pension income may be demanded.

Question 77

Are we building enough houses?

Answer 77

Estimated c.240,000 homes required annually, averaged 168,000 since 2001

Changing demography – divorce, ageing, migration, solo living produce more households

Absence of public investment in housing since 1980s

Increasing over-reliance on speculative house builders

Housebuilding risky, uncertain and expensive long term endeavour

• Land ownership and planning limit small and community builders
• Cyclical outputs damage supply chains and contribute to skill shortages

Building for rent counter-cyclical – private and social rent – and speeds outputs

Shift from bricks and mortar subsidies to personal subsidies (£ spent on housing benefit rather than new homes)

This issue dates back to the 1847 article

Question 78

How is housing an accuumulate of all building history?

Answer 78

For housing stock in any nation consists of all the accumulated dwellings built in the past, representing many different styles of building. Each nations own specific history will have a profound impact on its housing stock.

For example, in most European countries after World War II, a high proportion of new housing was built in the form of high-rise blocks of flats. In recent years, some of the biggest of this have been blown up in some countries because they were regarded as undesirable and became associated with social problems. However in other cities such as Stockholm Budapest and Vienna; high rise flats have been a long tradition, and have not been paid in a negative light

In the UK, the effects of very early industrialisation and consequent organisation I’ll still felt today in its housing stock. A very high proportion of the housing in the U.K.’s major cities are old that with more than a quarter being built in the 19th century, despite slum clearance programs and extensive bomb damage during the blitz in World War II.

A third of dwellings in the UK without before 1945, similarly to Denmark, France and Italy

. In many European countries, older housing is often among the most price and expensive housing. In many parts of East Asia, however, older housing is often less highly priced than newly built houses

Financial instruments around housing has changes rapidly

What has most strikingly changed is the rise of so-called ‘weightless’ financial trading.

This has enabled vast flows of globally source capital to fly around the planet and the evolution of a truly global corporate market, in which geographical boundaries have a come very little.

The key issue here is that this process has given rise to the expansion of homeownership in many countries, as well as rising house prices in many countries e in private financing, and low interest rates, and capital available for lending

Question 79

Does redistribution and de-commodification help with the housing supply deficit?

Answer 79

YES:
•Housing wealth is the story behind Picketty and wealth inequalities

• Commodification and financialisation of homes (UN, Rogers, Madden)
• Victorian inequalities in distribution of housing and space standards
• Building more homes will not sate investment demand
• Housing allowances based on maximum size of home for household

NO:
•No equivalent for homeowners

• Older people no incentives to downsize and relinquish homes
• Housing taxation- council tax, inheritance tax, capital gains, land taxation
• Inequalities spatially differentiated.

Question 80

What is the Social Division of Locational Housing?

Answer 80

Another social division arises from the fact that housing is locational - exists in the particular place.

In popular cities and nations, social tensions often arise, due to the demand for housing and other commercial interest to be located nearest tie centres of population, with the best facilities/cultural amenities

Competition for space and competing uses is at the heart of major social tensions, with power plays between local communities and properties developers often evident.

Right wing & nationalist groups and various political parties often campaign for so firstly against gypsies, travellers, single parents, immigrants and asylum seekers. Favourite God them as a threat to the property rights, jobs and well-being.

Quite often, it is so powerful and rich to win out by using their economic muscle and political connections that up another group is campaigning for the poor and powerless.

Question 81

What is the division of Homeownership and Renting in Society?

Answer 81

In some homeowning countries, the division between owner-occupiers and renters have become a major problem

Because tenants do not have access to housing equity, this impacts on their own income and wealth; and in countries with targeted welfare systems, they are more likely to be state dependent than homeowners

In many welfare states with high homeownership rates, there is an intergenerational divide between:

• The better-off older people (who have often paid off their mortgages, making them ‘outright owners’) who bought their house long ago
• Young people & young professionals

This generally is because house prices have accelerated so rapidly everywhere, that they are priced out.

Question 82

What is the proportion of people owning vs renting a house in the UK?

Answer 82

At the end of 2016, around 65% of UK households were owner-occupiers, 17% were renting from a private landlord and 18% were renting from a social landlord.
(www.parliament.uk)

Question 83

What are the Advantages of Renting?

Answer 83

Cheaper

Renting a property allows more flexibility than owning a home. This is ideal for those who could be faced with sudden changes such as a job relocation. Renting requires no long-term commitment from a Tenant, and is the best option if you don’t intend on staying in one place for a long time.

As a Tenant, there is the possibility of living in an area in which you could not afford to buy.

Moving out is easier for a Tenant than a Homeowner as there is no stress of finding someone to take over the lease, or finding a Buyer to purchase the property as this is the responsibility of the Homeowner or Landlord.

The only insurance required by a Tenant will be to cover the contents of the home, while all maintenance work on the property is for the Homeowner’s account, as is homeowners insurance.

• After paying rent, a Tenant may have additional money which they can use to invest elsewhere, whether it is saving towards buying a house or investing in the stock market, and need not worry about putting additional funds into a home loan.

Question 84

What are the Disadvantges of Renting?

Answer 84

A Tenant is bound by the rules of the lease agreement, which can impact the freedom to use or renovate the property.

You cannot make changes to a rented property without the consent of the Homeowner.

When renting, you will often have to deal with a Rental Agent who will then be the liaison between you and the Homeowner. This can result in issues taking longer to resolve since there is a 3rd party involved.

Renting offers no wealth creation or return on investment since the property will never legally belong to the Tenant, and instead, the Tenant is paying towards the Homeowner’s home loan.

• When renting a property, you will have no control over annual rental fluctuations which are directly affected by inflation.

There is no guarantee that a lease will be renewed when it expires.

Question 85

What are some stories about Renting?

Answer 85

Abuse of Power: “Rooms for rent are offered in exchange for “benefits” or “keeping me company”. Others are less subtle – “free accommodation in exchange for an erotic arrangement”.

Renting rooms for sexual favours is seen as a growing menace by campaigners, and a byproduct of a housing crisis where young people are unable to find somewhere to live without spending exorbitant sums.

The problem has become particularly marked in university towns, where young women are targeted by rogue landlords.”

Horror Stories: B.S rented some filthy spaces as a student, complete with nightmare neighbours . The worst part about this second house was the neighbours. They were constantly causing trouble, knocking our door with complaints, and one of them tried to start a fight with my house. They even called the police once and claimed that one of our house mates was going for naked morning runs and tried to get him arrested.’

Question 86

What are the Advantages of Owning?

Answer 86

More stability: you won’t have the risk of getting kicked out at any time

Able to modify your house

Financial gain from it – when selling, also house prices go up

Possible wealth effect

Owning a home offers the long-term benefits of security, equity and potential growth in personal wealth

The value of a home will appreciate over time and if you decide to sell, you can earn a profit off the sale.

When you buy a house it becomes your legal property, which allows you greater freedom in its use without restrictions often enforced by a Landlord.

Being a Homeowner allows you creative control of your property. You can alter the property, including décor changes, landscaping and renovations, to suit your needs and your style.

You have the option of buying to rent which enables a Homeowner to generate income from renting out the property. This income can be put towards the home loan.

Being a Homeowner who ensures repayments are made on time can improve your credit profile. Not only will you have a large investment to your name, but paying your monthly bond repayments on time increases your credit score.

You have the option to refinance your bond amount should you wish to withdraw a large amount of money to pay for major purchases.

There is an opportunity to save money in the long term as there are possible tax deductions related to income-generating properties.

Question 87

What are the Disadvantages of Owning?

Answer 87

It’s a big commitment – you need to be sure you can afford what you’re taking on.

When interest rates rise, your repayments will go up. It’s important you’re prepared for a rise.

It might not always be easy to sell your home, depending on what’s happening in the market.

You need to be sure you can afford maintenance costs like fixing a broken boiler or leaky roof.

If you stretch your budget when you buy you might not have money for meals out, holidays and entertainment.

If you’re living with someone and split up, deciding what to do with the property can be complicated and expensive.

If the value of your home falls, you might be unable to sell if you owe more to your mortgage lender than your home is worth.

You have less flexibility than when renting. For example, selling up and moving is more expensive as you have estate agency and legal fees to pay.

If you’re buying a flat you might incur additional service charges which is not usually payable if you are renting

Question 88

What are some stories about Owning?

Answer 88

When Dawn Turner’s son purchased a foreclosed home in rural Tennessee, he thought he was getting a steal. But after three years of living in the home, he and his family found out from neighbors the home was considered “unfit for human inhabitation” by local health authorities because the former owner produced methamphetamines in the home. From there, the new homeowners were financially responsible for bringing their home up to code. Dawn now runs MethLabHomes.com to make sure this doesn’t happen to other homeowners.

Question 89

What is the Overview of Housing?

Answer 89

All of these issues. To the fact that housing has become a central issue and how we need to think about and evaluate welfare state change; and the very nature and fabric of 21st-century society.

Although housing is seen by some theorists being at the margins of social policy, particularly by some theorists in nations where owner occupation dominate, such a fee was flawed.

Question 90

How did the change in private financing and lowered interest rates lead to the GFC?

Answer 90

The change in private financing has impacted on welfare states in important ways.

Almost all OECD nations have very low interest rates available across the world financial markets, enabling and wide spectrum of people to buy property.

Huge amounts of capital are made available for lending, especially In the US housing market, through a new process in which individual mortgages were packaged together and sold as bonds into the global financial system. These bonds were bought by pension funds, life insurance companies and other investors who need to hold long-term investments

As families pay back their mortgages for over 20 or 25 years, these bonds become more and more valuable; turning debt into capital

Some of these bundled up mortgages turned out to have been missold by mortgage brokers in the US, leading to many low-income families defaulting on their payments, meaning that these bonds, in turn, were not as valuable as they at first appeared, some of them were positively toxic

The scale of this problem was huge, and one of the reasons of the GFC