The Provision of Finance for Social Housing: The UK Experience

This paper reviews the mechanisms by which the British government has introduced private finance into the provision of housing for lower-income households. It clarifies the range of measures that have allowed transfers from social to private ownership, both into owner-occupation and to independent landlords. However, the main thrust of the paper is an examination of the approach to introducing private finance into new social provision undertaken by housing associations. It examines the range of institutions that have been prepared to provide finance, the terms and conditions on which funds have been made available and the impact that private funding has had on associations' operations and viability. Finally, the paper assesses the condition under which it has been possible to fund social housing through the private market and some of the concerns that this raises for future funding possibilities.