Social Housing

The term social housing embraces a wide range of initiatives that aim to provide good-quality, affordable housing. It is a means of providing affordable housing for vulnerable groups and/or middle income groups. Social housing can refer to both rented and owner-occupied housing. In parts of Asia and Latin [Page 692]America, it refers only to owner-occupied housing, whereas in Europe, it refers mostly to social rental housing.

Social housing is often understood as public housing—housing that is provided and owned by the government. But it can be more than that, as demonstrated by private initiatives and by the fact that, in the United Kingdom and the Netherlands, for example, public housing—including social housing—has been placed in the hands of nonprofit organizations.

Social housing can also be provided by commercial landlords in the private market. Commercial landlords in Germany and Spain may offer social housing: In exchange for a subsidy, they set the rents at a specific (social) level, and the dwellings are allocated to certain target groups. Tax credit schemes, such as the Low-Income Housing Tax Credit in the United States and the National Rental Affordability Scheme in Australia, play a similar role. In Ireland, Belgium, and Spain, social housing is provided by special social agencies in the private rental market. These agencies help vulnerable groups by renting housing from private landlords and guaranteeing that the rent will be paid. They also employ social workers to assist vulnerable tenants.

Affordable housing—a related term—has different meanings in different countries. In Australia, for example, a clear distinction exists between social housing for lower income groups and affordable housing for (lower) middle-income groups.

Three different criteria can define social housing:

• 1.
  Housing owned by a social landlord, thus excluding homeownership and private rental initiatives
• 2.
  Housing that is provided at below-market rates, which can be homeownership as well as social or commercial rental
• 3.
  Housing that is allocated according to need (and not price), including private rental initiatives and homeownership

These dwellings may be owned by a public body or a private commercial or noncommercial organization.