Financing affordable housing: a critical comparative review of the United Kingdom and Australia

Summary

Private investment in social and affordable housing has increased significantly in the United Kingdom over the past thirty years. However, the reverse is true for Australia. The key findings of the research are: private sector lending for affordable housing has come from 150 institutions, primarily banks, and supplied primarily to housing associations. Key to securing this level of private investment has been government action to create a nationally consistent regulatory framework for housing associations, a commitment to government funded rent subsidies for low-income households, a supply-side subsidy to leverage private finance for new construction, and use of land-use planning instruments to mandate the provision of affordable housing.


Project Number: 30206
Research Theme: Housing_affordability
Project Leader: Berry, Mike
Funding Year: 2003
Research Centre: RMIT-NATSEM

Research and Policy Bulletin

Research & Policy Bulletin

Issue 084: Financing affordable housing: a critical comparative review of the United Kingdom and Australia

Private investment in social and affordable housing has increased significantly in the United Kingdom over the past 30 years. The reverse is true for Australia.

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118KB PDF Document

Description

This research comprised a critical comparative review of affordable housing conditions, imperatives and policies by researchers in the UK and Australia.

The key findings of the research are:

  • Private sector lending for affordable housing has come from 150 institutions, primarily banks, and supplied primarily to housing associations.
  • Key to securing this level of private investment has been government action to create a nationally consistent regulatory framework for housing associations, a commitment to government funded rent subsidies for low-income households, a supply-side subsidy to leverage private finance for new construction, and use of land-use planning instruments to mandate the provision of affordable housing.
  • The rationale for government action on affordable housing in the UK included recognition of the risks of inaction – both macro-economic (e.g. general consumption levels) and macro-social (e.g. social cohesion).

More Information

Download now Final Report: No. 072: Financing affordable housing: a critical comparative review of the United Kingdom and Australia
1.97 MB PDF Document

Download now Research and Policy Bulletin: Issue 084: Financing affordable housing: a critical comparative review of the United Kingdom and Australia
118KB PDF Document

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