The benefits of tenure diversification
Summary
The evidence for tenure diversification and greater social mix leading to greater social cohesion was mixed at best. While some tenants felt that community spirit had improved as a result of renewal, there was little evidence that social networks between tenants and new owners had developed. Indeed, social networks on the renewal estates had been considerably disrupted through the redevelopment process.
Project Number: 70110
Research Theme: Public_and_Community_housing, Social_wellbeing
Project Leader: Randolph, Bill
Funding Year: 2001
Research Centre: UNSW-UWS
Description
This research focused on one of the key strategic objectives pursued by public housing authorities in Australia over the past decade. Tenure diversification strategies ('tenure mix') that lead to the transfer of public housing to alternative forms of ownership or management have been an important part of the operational asset management plans of a number of state housing authorities since the early 1990s. Early initiatives based on tenure diversification strategies were usually justified on the basis of a range of asset management related objectives, including asset enhancement and reinvestment to achieve stock realignment and diversification.
The encouragement of home ownership and alternative tenure options were also seen to be important. In more recent times it has become common to see tenure diversification initiatives justified on the basis that they will assist in the prevention of a range of socio-economic problems through a "whole of government" perspective linked to a range of "non-shelter" social outcomes. As a result, a strong line of policy logic has developed which more or less explicitly maintains that tenure diversification leads to an increased social mix in areas with previously high concentrations of public housing and consequently helps create more "balanced" and therefore more stable communities. A series of related social and economic benefits are then said to flow on from achieving this goal. These kinds of interrelationships and the positive social outcomes expected to flow from them are explicit in many of the bilateral agreements under the current Commonwealth State Housing Agreement.
Policies of tenure diversification have mainly taken the form of sales of existing, refurbished or redeveloped stock into home ownership, although transfers of housing management (and stock in some cases) to community housing providers have also been pursued as an alternative option. In either case, this action has often been linked to notions of greater choice and social mix. Such policies have been actively pursued in a number of States and the strategy has rapidly become established as conventional wisdom in Australia.
In summary, tenure diversification is considered an essential tool in addressing a range of inter-related objectives. These include:
- Improving public housing asset values and financial viability
- Enabling stock reconfiguration and dispersal Ameliorating housing management problems
- Breaking up concentrations of public housing
- Encouraging home ownership and alternative housing assistance options for lower income households
- Achieving a greater social mix and balance Improving interaction between renters and owners
- Reducing stigma and 'normalising' estates
- Creating a range of non-shelter benefits
However, little, if any, research had been conducted to systematically establish the range of tenure diversification strategies adopted across Australia. There had been no assessment of whether tenure diversification had achieved the goals set for it, either from an asset and housing management position or in terms of its wider 'non-shelter' and community-building role. The proposed research project aimed to address this gap in our understanding of this important housing and asset management strategy. In doing so it aimed to provide policy and good practice guidance as to how best to deliver the desired outcomes from investment in tenure diversification initiatives.
More Information
Final Report: No. 060: The benefits of tenure diversification
2.86 MB PDF Document
Positioning Paper: No. 065: The benefits of tenure diversification
2 MB PDF Document

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