Analysis of social housing system in Shanghai. Comparison with Europe

(1)

(2)

List of Figures

Figure 1-‐1 The structure of the thesis ... 6

Figure 2-‐1 Average housing costs as percentage of disposable income in the EU, by household type, for total population and those at risk of poverty (2009) ... 8

Figure 2-‐2 Tenure split in the 27 EU member states as a percentage of the total housing stock ... 9

Figure 2-‐3 Types of social housing providers in the EU ... 11

Figure 2-‐4 Criteria determining access to social housing in the EU 27 ... 12

Figure 2-‐5 Types of public support to financing social housing ... 13

Figure 2-‐6 Percentage of social housing in Europe out of total housing (TS) and rented housing (RS) ... 15

Figure 2-‐7 The current housing constitution of China's housing stock ... 16

Figure 2-‐8 Government and social contributions to funding (RMB billions) ... 18

Figure 2-‐9 Scheduled non-‐governmental contributions to affordable housing funding (RMB billions) ... 19

Figure 2-‐10 The welfare and social housing category in China ... 22

Figure 3-‐1 Housing price from 1995 to 2013 ... 24

Figure 3-‐2 Property market evolution process in Shanghai ... 25

Figure 3-‐3 Price indices of land and housing in Beijing and Shanghai ... 27

Figure 3-‐4 The structure of the Chinese urban land and housing market ... 27

Figure 3-‐5 The national growth rate of residential land ... 28

Figure 3-‐6 Real estate development in 2005 ... 29

Figure 3-‐7 Development of Oshima Index in Shanghai ... 33

Figure 3-‐8 Situation of employment of different income groups in Shanghai (2004) ... 34

Figure 3-‐9 Income group and percent of AMI ... 35

Figure 3-‐10 Annual disposable income per capita vs. urban poverty line (Five Major Cities in China) ... 35

Figure 3-‐11 Five Major Cities in China—Income Level ... 36

Figure 3-‐12 Eligibility for the Affordable Housing Program in five major ... 36

Figure 3-‐13 Map of administrative divisions of Shanghai ... 37

Figure 3-‐14 Housing price map in Shanghai according to distribution (2014)) ... 38

Figure 3-‐15 Affordable housing price in Shanghai with property ownership (2012) ... 40

Figure 3-‐16 Price to Income Ratio (PIR) and housing affordablity (source from (Sun L. , 2011)) .... 42

Figure 3-‐17 Price to Income Ratio (PIR) in Shanghai (1995-‐2005) by income category ... 42

Figure 3-‐18 Price to Income Ratio (PIR) in different countries ... 43

Figure 3-‐19 Affordability of normal commodity housing in five cities, China ... 44

Figure 3-‐20 Affordability of affordable housing in three cities, China ... 45

Figure 3-‐21 Average floor area per capita in the past thirty years in China ... 47

(6)

Figure 3-‐23 Average No. of rooms per household in Shanghai, 2000 ... 49

Figure 3-‐24 Housing resource of migrants ... 51

Figure 3-‐25 Image of “Villages in the City” in Shanghai ... 52

Figure 3-‐26 Location of “Villages in the City” in Shanghai ... 52

Figure 3-‐27 Image of “container living” in Shanghai ... 52

Figure 3-‐28 Households status in Shanghai, 1996-‐2006 ... 54

Figure 3-‐29 Statistics of residential floor area in Shanghai, 2004 ... 55

Figure 3-‐30 Transactions of commercial housing in Shanghai according to distribution ... 56

Figure 3-‐31 Statistics of urbanization rate of China with Shanghai ... 57

Figure 3-‐32 Graph of urbanization rate of China with Shanghai ... 58

Figure 3-‐33 High density of the city center in Shanghai ... 60

Figure 3-‐34 Map of urban villages and tower invasion in Shanghai, 1924 ... 62

Figure 3-‐35 Map of urban villages and tower invasion in Shanghai, 2010 ... 62

Figure 3-‐36 Big six affordable housing construction sites ... 63

Figure 3-‐37 Affordable housing annual construction plan of Shanghai ... 63

Figure 3-‐38 Transport infrastructure of Shanghai ... 64

Figure 3-‐39 Analysis of formation of unreasonable distribution of subsidized housing ... 67

Figure 4-‐1 Typical plan & section of "Civilian residence" ... 70

Figure 4-‐2 "Civilian community" in Qimei road in Shanghai ... 72

Figure 4-‐3 Typical master plan of "Civilian community" in Shanghai ... 73

Figure 4-‐4 Typical plan & section of "Civilian community" in Shanghai ... 73

Figure 4-‐5 Master plan of "Caoyang first village" ... 79

Figure 4-‐6 Over view of "Caoyang first village" ... 79

Figure 4-‐7 "A main street" of Minhang workers' village in Minhang satellite city ... 81

Figure 4-‐8 the plan of "Quyang New Village" residential building ... 81

Figure 4-‐9 "Quyang New Village" residential building ... 81

Figure 4-‐10 Exterior scene of "Yuanyang residence" ... 86

Figure 4-‐11 "Sanlinyuan" master plan and standard plan ... 88

Figure 4-‐12 Typical parity residences standard floor-‐1 ... 90

Figure 4-‐13 Typical parity residences standard floor-‐2 ... 90

Figure 4-‐14 The master plan of "Minhang Pujiang" large-‐scale project supporting residence ... 95

Figure 4-‐15 The bird view of "Minhang Pujiang" large-‐scale project supporting residence ... 96

Figure 4-‐16 Current welfare housing system structure ... 98

Figure 4-‐17 The residences land supply in Shanghai ... 102

Figure 4-‐18 The residences land supply in Shanghai ... 103

Figure 4-‐19 The housing size proportion of the residences land supply in Shanghai ... 103

Figure 4-‐20 Social housing distribution in Shanghai ... 104

Figure 4-‐21 Social housing distribution in Shanghai ... 105

Figure 4-‐22 The timeline of key housing policies in the current period ... 107

(7)

Figure 5-‐2 (Location of "Xin Yue Gong Yu" ... 112

Figure 5-‐3 Location of "Xin Yue Gong Yu" ... 112

Figure 5-‐4 Site plan and basic data of "Xin Yue Gong Yu" ... 113

Figure 5-‐5 Master plan of "Xin Yue Gong Yu" ... 113

Figure 5-‐6 Standard floor and ground floor of "Xin Yue Gong Yu" ... 115

Figure 5-‐7 Standard floor and ground floor of "Xin Yue Gong Yu" ... 116

Figure 5-‐8 Apartment plan of "Xin Yue Gong Yu" ... 116

Figure 5-‐9 Interior photo of the apartment "Xin Yue Gong Yu" ... 116

Figure 5-‐10 Interior photo of the dormitory "Xin Yue Gong Yu" ... 117

Figure 5-‐11 outdoor view of "Xin Yue Gong Yu" ... 118

Figure 5-‐12 Bird view of "Hu Fu Jia Yuan" ... 118

Figure 5-‐13 Bird view of "Hu Fu Jia Yuan" (research part) ... 119

Figure 5-‐14 Location of "Hu Fu Jia Yuan" ... 120

Figure 5-‐15 Location of "Hu Fu Jia Yuan" ... 120

Figure 5-‐16 Site plan and basic data of "Hu Fu Jia Yuan" ... 121

Figure 5-‐17 Master plan of "Hu Fu Jia Yuan" ... 122

Figure 5-‐18 Standard floor and ground floor of “Hu Fu Jia Yuan” ... 123

Figure 5-‐19 Standard floor and ground floor of "Hu Fu Jia Yuan" ... 124

Figure 5-‐20 Apartment plan of "Hu Fu Jia Yuan" ... 125

Figure 5-‐21 Out view of "Hu Fu Jia Yuan" ... 126

Figure 5-‐22 Bird view of “C3 Block in Pujiang Town” ... 126

Figure 5-‐23 Out view of “C3 Block in Pujiang Town” ... 127

Figure 5-‐24 Location of “C3 Block in Pujiang Town” ... 127

Figure 5-‐25 Location of “C3 Block in Pujiang Town” ... 128

Figure 5-‐26 Site plan and basic data of “C3 Block in Pujiang Town” ... 128

Figure 5-‐27 Master plan of “C3 Block in Pujiang Town” ... 129

Figure 5-‐28 Standard floor and ground floor of “C3 Block in Pujiang Town” ... 130

Figure 5-‐29 Apartment plan of “C3 Block in Pujiang Town” ... 131

Figure 5-‐30 Out view of “C3 Block in Pujiang Town” ... 132

Figure 6-‐1 Different requirements of various types of housing users in Shanghai ... 134

Figure 6-‐2 Demographics of social housing ... 140

Figure 7-‐1 Tenure status (%) out of total dwelling stock, 2008 ... 143

Figure 7-‐2 Funding condition of rental social housing ... 145

Figure 7-‐4 Funding proportion of social housing construction in 2009 ... 149

Figure 7-‐6 The price compared between VPO and market houses. in 2014 ... 151

Figure 7-‐7 The founding arrangement structure ... 153

(8)

Figure 7-‐10 Sustainability, social housing and community services in Italy ... 158

Figure 7-‐11 Founding arrangement of Italian social housing system ... 159

Figure 8-‐1 The street view of Rivp Louis Blanc ... 162

Figure 8-‐2 The street view of Rivp Louis Blanc ... 163

Figure 8-‐3 The location of Rivp Louis Blanc ... 163

Figure 8-‐4 The location data of Rivp Louis Blanc ... 164

Figure 8-‐5 The diagram of site plan of Rivp Louis Blanc ... 165

Figure 8-‐6 The diagram of Rivp Louis Blanc ... 166

Figure 8-‐7 The first floor plan of Rivp Louis Blanc ... 166

Figure 8-‐8 The ground floor plan of Rivp Louis Blanc ... 167

Figure 8-‐9 The apartment plan of Rivp Louis Blanc ... 167

Figure 8-‐10 The section of Rivp Louis Blanc ... 168

Figure 8-‐11 The view from the coutyard of Rivp Louis Blanc ... 168

Figure 8-‐12 The view from the ground floor of Rivp Louis Blanc ... 168

Figure 8-‐13 Outside view of Social housing in Carabanchel ... 170

Figure 8-‐14 Outside view of Social housing in Carabanchel ... 171

Figure 8-‐15 The location of Social housing in Carabanchel ... 171

Figure 8-‐16 The location and data of social housing in Carabanchel ... 172

Figure 8-‐17 The diagram of apartment plan of social housing in Carabanchel ... 173

Figure 8-‐18 The interior view (use as rooms) of apartment of social housing in Carabanchel ... 173

Figure 8-‐19 The interior view (use as public activities) of apartment of social housing in ... 174

Figure 8-‐20 The diagram of composition of social housing in Carabanchel ... 174

Figure 8-‐21 The standard floor plan of social housing in Carabanchel ... 174

Figure 8-‐22 Bird view of Vignoles Gymnasium and Garden ... 175

Figure 8-‐23 The view from the roof garden ... 176

Figure 8-‐24 The location of Vignoles Gymnasium and Garden ... 177

Figure 8-‐25 The site plan and data of Vignoles Gymnasium and Garden ... 178

Figure 8-‐26 The diagram of Vignoles Gymnasium and Garden ... 178

Figure 8-‐27 The diagram of Vignoles Gymnasium and Garden ... 180

Figure 8-‐28 The standard floor plan of Vignoles Gymnasium and Garden ... 180

Figure 8-‐29 The section of Vignoles Gymnasium and Garden ... 180

Figure 8-‐30 The section of Vignoles Gymnasium and Garden ... 181

Figure 8-‐31 The view from corridor ... 182

Figure 8-‐32 Outside view from Vignoles Gymnasium and Garden ... 183

Figure 8-‐33 The street view of Parkrand ... 184

Figure 8-‐34 The street view of Parkrand ... 185

Figure 8-‐35 The location of Parkrand ... 185

Figure 8-‐36 The location data of Parkrand ... 185

Figure 8-‐37 The street view of Wozoco ... 187

(9)

Figure 8-‐39 Private/Public space and Different tenants arrangement of Silodam ... 188

Figure 8-‐40 The view of Parkrand ... 188

Figure 8-‐41 The process of social housing change in above three projects ... 189

Figure 8-‐42 The diagram of composition process of Parkrand ... 189

Figure 8-‐43 Site plan of Parkrand ... 189

Figure 8-‐44 Rooftop penthouses between the towers in Parkrand ... 190

Figure 8-‐45 Semi-‐public patio in Parkrand ... 191

Figure 8-‐46 The view of social housing in via cenni ... 192

Figure 8-‐47 The street view of social housing in via cenni ... 193

Figure 8-‐48 The location of social housing in via cenni ... 193

Figure 8-‐49 The location data of social housing in via cenni ... 194

Figure 8-‐50 Function integration of social housing in via cenni ... 195

Figure 8-‐51 Indoor activities of social housing in via cenni ... 195

Figure 8-‐52 Outdoor activities of social housing in via cenni ... 195

Figure 8-‐53 Function integration of social housing in via cenni ... 196

Figure 8-‐54 Wood structure of social housing in via cenni ... 197

Figure 8-‐55 Environmental performance rating of social housing in via cenni ... 197

Figure 8-‐56 Apartment type of social housing in via cenni ... 198

Figure 8-‐57 Ground floor plan of social housing in via cenni ... 198

Figure 8-‐58 Second floor plan of social housing in via cenni ... 199

Figure 8-‐59 Connecting element of social housing in via cenni ... 199

Figure 8-‐60 The view of Il Borgo Sostenible ... 200

Figure 8-‐62 The location of Il Borgo Sostenible ... 201

Figure 8-‐63 The location data of Il Borgo Sostenible ... 201

Figure 8-‐64 Analysis of type A home of Il Borgo Sostenible ... 202

Figure 8-‐65 Analysis of type B home of Il Borgo Sostenible ... 203

Figure 8-‐66 Analysis of type C home of Il Borgo Sostenible ... 205

Figure 8-‐67 Selected apartment plan for each type ... 205

Figure 8-‐68 Function integration of Il Borgo Sostenibile ... 207

Figure 8-‐69 Service plan and the relationship with service system ... 208

Figure 9-‐1 Diagram of proposal 1 ... 211

(10)

Figure 9-‐5 Example of proposal 6 ... 220

Figure 9-‐6 Example of proposal 6 ... 220

(11)

Abstract

In China, especially in Shanghai, the demand for social housing is increasing. The reasons of this situation are mainly the high price of property, the large amount of immigration, the rapid urbanization and so on. These years, many relevant policies have been come up and implemented to build plenty of social housings in Shanghai. However, as the immature policies for the social housing system and the inadequate experience of the implementation, many sever problems have already been appeared, like the inappropriate distribution, the insufficient infrastructure, the class isolation, the property and the identity.

Compared to the situation in Shanghai (China), European countries have experienced a long term of social housing system development, both in the field of gradually improvement of the policies and the plenty excellent practices.

The aim of writing this thesis is to pinpoint the weakness of the social housing in Shanghai, and give it some inspiration by researching the policies and implementations in European countries. To achieve this aim, the thesis can be divided into four main parts:

Firstly, study the definition of the social housing and the housing situation in Shanghai. Highlight the immediate demand of social housing in Shanghai.

Secondly, research the policies and cases of social housing in Shanghai. Pinpoint the weaknesses of current social housing system of Shanghai.

Thirdly, research the policies and cases of social housing in European countries. Mainly search the inspiring policies and method respected to the pinpointed weaknesses in order to improve the social housing system in Shanghai.

Lastly, make some proposal for the existing social housing cases in Shanghai to make it better to satisfy to the current social housing demand.

Key words

social housing, Shanghai, Europe, policy, implementation

(12)

Astratto

In Cina, in particolare a Shanghai, la domanda di social housing è in aumento. Le ragioni di questa situazione sono da individuarsi soprattutto nei prezzi elevati delle abitazioni, nel fenomeno dell’immigrazione e nella rapida urbanizzazione.

In questi anni sono state avviate molte politiche volte alla costruzione di edilizia sociale, ma, a causa dell’assenza di precedenti esperienze, si sono riscontrati diversi problemi, quali una distribuzione inadeguata, infrastrutture insufficienti, isolamento di classe.

Rispetto alla Cina, e a Shanghai in particolare, i Paesi Europei hanno maturato da maggior tempo un sistema di edilizia sociale e si sono distinti per lo sviluppo di alcune best practice.

Lo scopo della presente tesi è di individuare i punti di debolezza dell’edilizia sociale a Shanghai e di trarre ispirazione dalle politiche attuate nel settore in Europa.

La tesi si articola in quattro parti principali:

1) Definizione della situazione e della domanda abitativa sociale a Shanghai.

2) Politiche ed esempi di social housing a Shanghai: individuazione dei punti di debolezza del sistema attuale.

3) Politiche ed esempi di social housing in alcuni Paesi Europei, al fine di individuare spunti di miglioramento per il sistema di edilizia sociale di Shanghai.

4) Proposte di miglioramento di alcuni casi di social housing esistenti a Shanghai.

(13)

Chapter 1 Introduction

1.1 The interest of the theme

Social housing is a kind of social welfare housing, which mainly sponsored by government and social welfare institutions, aiming to provide a better living conditions for the vulnerable social groups.

Nowadays, China, especially Shanghai, which is one of the most important cities in China, is developing in a dramatic speed. Meanwhile, there are also many social problems starting to emerge. One of the biggest issues is the housing problem, both in terms of the quantity demand and the quality demand. The reasons of this situation are mainly the high price of property, the large amount of immigration, the rapid urbanization and so on. However, due to the unbalance development in the latest two decades, there are increasingly vulnerable social groups in Shanghai-‐‑a highly competitive city. Therefore, social housing is an immediate demand.

Since the founding of People’s Republic China (1949), China has searched many ways to achieve the quantity of living place and improve the quality of living condition. In Shanghai, the government has made and improved many relevant policies, like 7090 policy, limit price housing, 900 billion social housing stimulation program. However, as the unexpected dramatic improvement of Shanghai (China), the welfare housing and social housing policies and the implementations are not mature enough to solve the increasing housing problems. Besides, as the advance of the social housing implementation in Shanghai (China), new problems relative to social housing system have also emerged, like the inappropriate distribution, the insufficient infrastructure, the class isolation, the property, the identity and so on.

Compared to the condition in Shanghai (China), European countries have a long history of the social housing system development, even since the middle of 19th Century. Nowadays, each country has different policies, like the ratio control between the ownership and the rental housing, the anti-‐‑ speculation rule, the mix of social housing and no-‐‑social housing and so on. They also have made many practices, having effectively improved the living conditions of the vulnerable social groups. Therefore, it is necessary to study the social housing policies and implementations in European countries, especially focus on the problems of social housing system in Shanghai (China) to find some way to improve it.

Overall, this thesis weighs on the research of the policies and cases both in Shanghai (China) and Europe, expecting inspirations from the experience of the European countries and making some appropriate proposals to improve the current social housing situation in Shanghai (China).

(14)

2

1.2 Research object

The research mainly focuses on the policies and the implementation in both Shanghai (China) and several European countries those have excellent social housing tradition and practices. As the policies research part, we firstly research the policies development process and the current policies both of China and Shanghai. Then it researches the relevant policies in European, which can improve the insufficient policies of Shanghai. As the implementation research part, this thesis researches several typical cases in Shanghai and also several inspiring cases in Europe, which can improve the insufficient implementations in Shanghai.

1.3 Purpose

The purpose of this thesis is to find some proposals to improve the social housing system of Shanghai. In order to achieve this aim, we should pinpoint the significant problems of Shanghai both in policies and implementations, and then research the respective policies and implementations in Europe.

1.4 Framework of the study

This thesis can be divided into four parts:

Firstly, study the definition of the social housing and the housing situation in Shanghai. Highlight the immediate demand of social housing in Shanghai.

This part includes two chapters: the first chapter is “Definition-‐‑ categories of social housing”, which mainly definite the object of the research in terms of four features “tenures, providers, beneficiaries and funding arrangement”, meanwhile making a comparison between the social housing definition in Europe and in China. The second chapter is “Background-‐‑need of social housing in Shanghai”, which mainly discuss the demand of social housing in Shanghai, in terms of the property price, the housing affordability and the problem of the normal housing system that relevant the vulnerable social groups.

Secondly, research the policies and cases of social housing in Shanghai. Pinpoint the weaknesses of current social housing system of Shanghai.

This part includes three chapters: the first chapter is “Policy-‐‑housing policies in China and Shanghai”, which mainly research the development of social housing policy of China and Shanghai and also the current social housing policy of Shanghai. The second chapter is “Case Study-‐‑the case studies of social housing in Shanghai”, which in the implementation view to observe the social housing system of Shanghai. The third chapter is “Problem-‐‑ the problems in the current social housing system of Shanghai”, which mainly conclude the policies and implementations of the social housing system of

(15)

Shanghai these years, and pinpoint the problems. There are mainly six problems have been discussed in this chapter:

1) Inappropriate distribution (insufficient infrastructures and community services), which mainly indicates the improper site locations of the current social housings in Shanghai and the incomplete facilities surrounding.

2) In sufficient proportion of public rental housing with improper supply, which mainly indicates the incomplete social housing types (tenures & design) currently provided in Shanghai.

3) Lack of providers, which mainly indicate, the investment and responsibility of social housing are still mainly afforded by the government of Shanghai. This mode accumulates the pressure and could not work effectively.

4) Inequality of beneficiaries, which mainly indicate many immigrant workers from other cities, could not equally enjoy this housing welfare, but they are the major vulnerable groups in Shanghai.

5) Social segregation, which mainly indicates the social housing communities in Shanghai are still constructed isolated from the non-‐‑social housing communities and have specific identities.

6) Monotonous design, which mainly indicates the design of social housing in Shanghai does not concern about the demographic characteristics in Shanghai, which have already been an important issue currently.

Thirdly, research the policies and cases of social housing in European countries. Mainly search the inspiring policies and method respected to the pinpointed weaknesses in order to improve the social housing system in Shanghai.

This part includes two chapters: the first chapter is “Policy-‐‑housing policies in specific countries in Europe (the Netherland, France, Spain and Italy). The second chapter is “Case Study-‐‑the case studies of social housing in Europe”, which mainly concerned the specific cases those could inspire the vulnerable policies and implementations in Shanghai. In this chapter we mainly follow the Shanghai’s problems, which we collected in the previous part, to find the corresponding cases. Besides, all the cases are from the four countries, those we specifically researched.

Lastly, make some proposal for the existing social housing cases in Shanghai to make it better to satisfy to the current social housing demand.

This part includes one chapter: “Proposal-‐‑the proposal for the cases of social housing in Shanghai”, which mainly propose some proposals to improve the policies and implementations in Shanghai. In this chapter, we mainly propose seven proposals-‐‑ the first six proposals are specifically corresponded to the six problems in Shanghai and the last proposal is a

(16)

4

1.5 Methodology

In this thesis, mainly four methods are adopted, including “Literature Research”, “Policy analysis”, “Case Studies” and “Comparison”.

• Literature research

This method is adopted nearly during whole process of research. The aim is to get the general idea of “social housing” in both European system and Shanghai (China) system, and to understand the housing and social housing situation both in European and Shanghai (China).

• Policy analysis

This method is adopted in Chapter 3 and Chapter 6, which mainly related to the policies of Shanghai (China) and European countries. The aim is to understand the root of the different social housing situations and pinpoint the problems and search for solutions.

• Case studies

This method is mainly adopted in Chapter 4 and Chapter 7, which mainly related to the implementations of social housings in Shanghai (China) and European countries. The aim is to assist the policy analysis and to observe the implementations.

• Comparison

This method is mainly adopted in Chapter 7, which assist to select several relative cases in European, inspiring to improve the current situation in Shanghai.

(17)

(18)

6

(19)

Chapter 2 Definition

-‐‑Categories of Social Housing

“What is social housing?” “What are the main characters of social housing?” “What kind of society has the demand of social housing?” These questions should be clarified before the following discussions.

After we observed the world’s social housing system, we found the definition varies between different countries. It varies between China and Europe, and it also varies between the different countries in Europe, such as Netherland, France, Spain and Italy.

Therefore, the first step is to research the general definition and categories of social housing both in Europe and in China and to understand the general background of the social housing systems in the different countries.

Additionally, all the following descriptions in this chapter are the general introduction of the social housing definition and categories. As to the detail policies and implementations, we will discuss in the following chapters. 2.1 Definition of social housing in Europe

2.1.1 Diversity between countries according to four elements

Social housing is a kind of social welfare housing, which mainly sponsored by government and social welfare institutions, aiming to provide a better living conditions for the vulnerable social groups.

The demand of social housing in a society depends on the housing affordability there. Housing affordability depends on how much percentage of the income of a family spent on housing. “On average Europeans spend over a fifth of their income (22.9%) on housing. The share of housing costs out of disposable income for those at risk of poverty is almost double the overall rate (40.4%).” (Laino, 2011) In another word, if a family has to spend a relative high percentage of income on housing is a key judge of if the family belongs to the vulnerable social groups.

Besides, the quality of housing condition is also a key issue, which should be considered in terms of the demand of social housing. Some vulnerable groups live in poor condition, which could not guarantee their basic decent life. The government has the obligations to develop their living conditions by providing some kinds of housing subsidy.

Even though, in terms of the concept of social housing, different countries vary for the detailed definitions. “Many countries have not adopted an official definition of ‘social housing’, and this term is not used everywhere. Instead we find the terms such as ‘Housing at Moderate Rent in France (HLM), ‘Common Housing’ or ‘Not-‐‑for-‐‑profit housing’ in Denmark, ‘Housing

(20)

8

Promotion’ in Germany, ‘Limited-‐‑Profit Housing’ or ‘People’s Housing’ in Austria, ‘Protected Housing’ in Spain, ‘public utility’ housing in Sweden, etc.” (Laino, 2011) “Social housing in the European Union is characterized by the wide diversity of national housing situations, conceptions and policies across member states. A variety of approaches are implemented across the EU, in terms of ‘Tenures’, ‘Providers’, ‘Beneficiaries’ and ‘Funding arrangements’.” (Laino, 2011) • Tenures

In terms of the tenures, social housing in Europe can be divided into three groups: “Rental social housing”, “Shared ownership” (where tenants buy a share in their dwelling and pay the rent on the rest of it), and “low-‐‑cost housing for sale”. (Laino, 2011) In most countries, social housing is provided by rent, but recently, the “shared ownership” social housing trends more and more popular, in UK for instants, and also in some countries, especially in the south of Europe, like Greece and Spain, social housing can be only provide as “low-‐‑cost housing for sale”.

However, rental housing in more considered as a kind of sustainable social housing type. Partly because it can purely provide convenience to the most vulnerable sectors, with the more appropriate interior layout and normally furnished, and partly because it can avoid speculation (with the right of ownership of social housing, some owners resell the social housing Figure 2-‐‑1 Average housing costs as percentage of disposable income in the EU, by household type, for total population and those at risk of poverty (2009) ( Source: Eurostat)

(21)

with a price of non-‐‑social housing, which lead to the disappearance of social housing.) to some extent.

Even though, also amount of countries insist on part or whole percentage of “shared ownership housing” or “low-‐‑cost housing for sale”, because it could relieve the pressure of housing subsidy. The mainly trend in most EU countries is the increase in the private ownership rate. “This trend has also been greatly boosted on the one hand by policies encouraging home ownership (mainly through tax incentives for home buyers but also schemes encouraging the sale of social housing, such as the introduction of Right to Buy in the UK in the 1980s), and on the other by the sustained low interest rates over recent years as well as by an increasingly competitive mortgage market.” (Laino, 2011)

Now, when we observe the private ownership rate of the housing market. We can see that in some eastern European countries, such as Romania and Estonia, the rate is reaching as high as 90%, while in some southern European countries, such as Spain and Italy, the rates are around 70%-‐‑80%, and in some northern European countries, such as Germany, the rate is around 40%-‐‑60%. When we count for the percentage of social rental housing in the sector of all rental housing, only a few countries like Germany accounts for more than 50%.

Figure 2-‐‑2 Tenure split in the 27 EU member states as a percentage of the total housing stock (source: Housing statistics in the European Union 2010, updated by national correspondents)

(22)

10 • Providers

In terms of providers, social housing in Europe can be divided into four groups, “Local authorities”, ”public companies”, “non-‐‑profit or limited-‐‑ profit associations and companies” and “private for profit developers and investors.”

Traditionally, the provider of social housing was only government. However, since 1980s, ”responsibility for housing policy shifted away from the central government and municipalities to the federal provinces. (This had relatively little effect on Vienna, however, because it is both a city and a federal province.) Nevertheless, the central government is still responsible for the regulation of home ownership and laws governing the rented sector. Central government also continues to be responsible for raising funds for new construction, although distribution of these funds is through the federal provinces.” (J., 2007) As the subsidies of government are limited, the private sector provider for social housing is increasing. “In the Netherlands, for instance, the housing association sector now funds all its own investment; in Sweden the sector actually makes a positive contribution to government; in the transition economies and in Germany there is no longer any appetite for national funding. More generally, EU monetary requirements and other constraints have reduced available funds. In this context, it is hardly surprising that there is growing emphasis on the role of the private sector, not only in undertaking investment but also in funding that investment.” (J., 2007)

Today, the main type of provider is a combination of these characters. Its means the providers are always the combination of public providers and private providers, the combination of non-‐‑profit organizations and profit organizations. “This is the case for instance in England, where housing associations are nowadays the main providers with 54% of the social housing stock while local authorities still manage 46%. Similarly, out of the total social housing stock, in Austria, 60% of the stock is owned by municipalities and public companies, but municipalities have withdrawn from new construction over the last decade and the main sector is currently the Limited-‐‑Profit sector. The past four years have seen this trend increasing, with local authorities in most cases retreating from the production of new social housing and concentrating on the management of the existing stock, leaving the private sector as the main one responsible for new developments.” (Laino, 2011) This kind of cooperation normally works like this: the private sectors could get the government subsidies, if they would provide some social projects like low-‐‑ rent social housing with this subsidies. There are some instances: “in Germany since the institutional non-‐‑profit sector was dissolved (in 1989). The German system is currently based on the allocation of public funding especially in the form of tax privileges to any kind of housing provider in exchange for the use of a dwelling for social purposes on a temporary basis. Similarly in Spain all sorts of developers can access preferential loans if the

(23)

dwellings qualify as ‘protected dwellings’, and in Italy, private providers can participate to certain social housing schemes upon agreement with their municipality.” (Laino, 2011) • Beneficiaries

In terms of the beneficiaries, social housing in Europe can be divided into three groups: -‐‑“all citizens”, ”means-‐‑tested income thresholds”, ”the most vulnerable households”

Normally, the target beneficiaries in most countries are decided by the income-‐‑level. Social housing is always considered to provide for the vulnerable class. For example, the low-‐‑income class, the unemployment, the homeless, single parent family, the elderly and the handicapped. However, the standard vulnerable class varies in different countries. For example, in Austria and France, the standard is suitable for most population.

(24)

12

Besides, there are also some countries provide social housing to all citizens. “This is notably the case in the Netherlands, where up until recently access to social housing was never restricted on the basis of income and was virtually open to all citizens. However the system was recently reformed following a decision by the European Commission in 2010 – so that social housing provision is currently set to target disadvantaged people or socially less advantaged groups, as well as to certain categories of key workers, primarily defined in terms of income.” (J., 2007)

Furthermore, in terms of the allocation of social housing, there is no restriction about the area and construction cost of social housing. All the applicants are suitable for all kinds of communities, no matter their identities, such as unemployed people, elderly, youth, disable people. “This is a consequence of the principle of avoiding social segregation, by providing access to public dwellings to all segments of society.” (Laino, 2011)

(25)

• Funding arrangements

In terms of the funding arrangements, social housing in Europe can be divided into two groups: -‐‑“100% financed by public money”, “relying heavily on debt raised on the credit market”.

Not all the countries can afford the amount number of social housing subsidies. The public authorities always find assistance from the bank loans, public loans or some private organizations and contributions. “The situation varies according to a number of factors such as the level of maturity of social housing providers, the government’s commitment to support the sector, and conditions on the mortgage market. Also the way rents are determined is key to the financial sustainability of social housing, as well as the existence of demand-‐‑side benefits.” (Laino, 2011)

Furthermore, it should also be noted that, the private providers also could get some interest through assisting the social housing system. For example, the providers could get a land with a discount price, such as in Austria and Italy. Besides they can also require for the tax privileges. As well, they could also get the tax rate exemptions or reductions from the capital grain tax and so on.

Figure 2-‐‑5 Types of public support to financing social housing (source from (Laino, 2011))