Consumers' Responses to Choice-based Letting Mechanisms

Abstract

During the 1990s a large majority of the social rented sector managers in the Netherlands shifted towards an advert model of allocation in place of a waiting list system. This paper focuses on the consumer's response to this new letting mechanism. Three case studies were conducted, geared to evaluate consumers' appreciation and understanding of the advert model. Various additional local, regional or national evaluations are used to put the findings from the case studies in perspective. Generally, the public appreciates the advert model more than the distribution system. However, insufficient understanding of the complex do-it-yourself allocation system affects appreciation of the system and access to vacancies both negatively. On average, people on low income and ethnic minority members (overlapping groups) were more prone to lack of understanding and were less successful applicants as a result. Moreover, the allocation mechanism has not changed differences in resources and bargaining power and its effects on the outcome of the allocation process.