Housing Policy

Government Objectives

Governments may have a number of objectives in the housing field. One set may relate to the supply and condition of the housing stock. For example, many countries have policies to ensure that new housing is built to stipulated standards. Also, many countries will intervene to improve the condition of existing housing, such as through slum clearance or upgrading. Policy may also be directed at the quantity or location of new production.

Another set of objectives may relate to the consumption of housing. Intervention may be directed at the legal structures of tenure that determine the rights and obligations of the parties involved. Another area of intervention is access to housing, usually for low-income groups. Thus housing finance and subsidy systems may be designed to enable households with low incomes to access housing that otherwise they could not afford and may be related to policies on income distribution and the alleviation of poverty.

Policies may also be aimed at the functioning of housing markets. Governments set the framework within which markets operate and may intervene to stabilize or change the level of activity.

To achieve these aims governments may use a variety of forms of intervention. One may be the direct provision of housing, as in forms of state housing such as council housing in the United Kingdom. Regulation is another form where the state will influence the actions of other parties by setting standards or frameworks. An example would be building codes or regulations. Another common form is a system for the regulation of new development through a land use planning system. Subsidies may be used to influence the behavior of either housing developers or consumers. Intervention may take the form of the provision of information or guidance to the relevant parties. An example could be the provision of information on the legal rights of tenants. Government also sets the framework of accountability that can make parties respond to the needs of particular groups. An example may be the institutional structure of public housing, which may be run by local councils with tenants having rights to be consulted.

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