Cost-based Social Rental Housing In Europe

The report "Cost-based Social Rental Housing in Europe" is a comprehensive study commissioned by the Housing Agency in Ireland, in collaboration with Housing Europe, the European Federation of Public, Cooperative, and Social Housing. The authors, including Alice Pittini, Dara Turnbull, and Diana Yordanova, aim to provide insights into the social housing models in Austria, Denmark, and Finland, focusing on cost-based rental systems that promote sustainable housing.

The report highlights that cost-based social rental housing serves as a successful model, ensuring long-term affordability for tenants while contributing to diverse, sustainable communities. Austria, Denmark, and Finland have structured their systems effectively, with Austria's social housing sector accounting for 24% of the national housing stock, Denmark at 20%, and Finland at 11%.

In Austria, the Limited-Profit Housing Act regulates cost-based social housing, emphasizing sustainability and accessibility. The sector is primarily composed of limited-profit housing associations and municipal providers. The average rent in Austria's social housing is approximately €7.40 per square meter, significantly lower than the private rental market. The system allows for broad eligibility, ensuring that around 80% of the population can access affordable housing.

Denmark's non-profit housing sector has seen growth due to a robust system of financing and regulations, which supports a diverse range of housing types, including family dwellings and accommodations for the elderly. The average rent in newly built non-profit housing is about 28% lower than in the private sector. The Danish model emphasizes tenant democracy, allowing residents to influence their living conditions, while the state and municipalities provide financial support for development, ensuring sustainability.

Finland’s social housing sector, comprising around 11% of the housing stock, focuses on providing affordable homes primarily for low- and medium-income residents. The Finnish model employs a cost-recovery principle, allowing for rent equalization across different housing developments. This system enhances accessibility for lower-income households and promotes social cohesion. A significant portion of the social housing stock continues to offer rents aligned with previous cost-based systems, even after public loans are repaid.

The report underlines the importance of long-term planning and sustainable funding mechanisms in social housing across Europe. By implementing cost-based rental systems, these countries not only provide affordable housing but also build resilient communities. The insights gained from Austria, Denmark, and Finland may serve as valuable lessons for other European nations looking to enhance their social housing policies and ensure housing sustainability for all.