Housing Allowances in West Germany and France

Abstract

ABSTRACTMeans-tested housing allowances have played an increasingly important role in housing policies in a number of European countries in recent years. They have also provoked considerable controversy, particularly when associated with neo-liberal reforms. This has happened in West Germany, where a national scheme was introduced in 1965 as part of a reform programme involving widespread rent decontrol and a substantial reduction in ‘social housing’ expenditures. The discussion in this paper suggests that the new scheme was not very successful, either in preventing financial hardship or in providing a stimulus for house-building. Since 1965 there has been growing resistance to the idea of housing allowances as a primary instrument of housing policy, and the present government has favoured a different approach with the allowances complementing other more direct controls over the housing market.Different interpretations of the role of housing allowances are examined in the section on France, and there is also discussion of controversial issues of a technical character. In an attempt to adapt aid closely to particular needs the French have developed extremely complex arrangements, which clearly create difficulties for administrators as well as potential recipients. There has also been conflict between an endeavour to use the allowances to improve housing standards and the aim of providing help for the poorest sections of the community.