Recent Changes in the Social Rented Sector in The Netherlands

Abstract

The Netherlands has a large and differentiated stock of social rented dwellings, forming more than 40 per cent of the total housing stock. Housing associations are by far the largest providers of housing services in this sector. Traditionally, these associations were subsidised heavily but since 1995 Dutch government has no longer directly subsidised these associations. This paper deals with changes in Dutch housing associations in a period (1988-95) characterised by government austerity, deregulation, market conformity, privatisation and promotion of home-ownership. It is explained how the housing associations were able to survive and even maintain prospects for a promising future in a political climate that threatened the social rented sector. It is clear that housing associations can now operate more independently than in the past. This is seen as a positive development, but the government is now discovering the drawbacks of complete privatisation. A firmer embedding in a public framework is considered desirable now. Recently the cabinet introduced a strengthening of public supervision. The housing associations' umbrella organisations presented their own National Housing Programme and published a business code for housing associations. A crucial issue has not been discussed so far: who will subsidise the housing investments for low-income households in periods of economic stagnation?