Changing welfare states and social housing: Consequences for spatial segregation ‐ reviewed

Abstract

Most western countries have reached a peak of welfare and are facing cuts to their welfare programmes. Housing policies and the housing market are similarly going through changes with regard to ownership, rent levels and market prices. The process can be characterised in terms of privatisation, deregulation and a residualisation of the social housing sector. So far changes in Sweden have been slow. To understand the process of change a review of international studies involving Denmark, Finland, Germany (former West Germany), Great Britain, the Netherlands, Canada and Australia has been carried out. All countries have adopted a welfare state concept for their development after 1945. Since the 1970's there has been a change in attitude towards social housing. This study shows that the social housing sector seems to become smaller and/or more marginalised leading to an increase in spatial segregation and a polarisation between various socio‐economic groups in society. When the sector becomes smaller the households that remain are low‐income households. Even if the sector remains intact the increase in low‐income households in society as a whole leads to a larger share of these households in the social housing sector. However, it seems to be the extent to which a social housing sector has become residualised rather than the size that determine the rate of segregation. Great Britain has a comparatively large social housing sector but it is to a greater extent residualised than the smaller social housing sector in Denmark. The willingness of various governments to reduce or change the social housing sector seems to be part of a change in the welfare state as such. Together with cuts in welfare programs this results in a growing number of poor households that are finding it difficult to find housing they can afford. With current government policies the housing situation for this group is likely to get worse.