Housing Policy Reform: A Constructive Critique

Abstract

This paper critically evaluates reforms which have been proposed to counter the effects of the growing imbalance between direct and indirect assistance for housing. It proposes a radical restructuring of assistance based on a form of support which enables the shelter and asset components of housing to be separated and assistance to be directed solely towards the former. The policy proposal consists of several essential components: these are a housing cost insurance scheme (providing a housing allowance financed by the taxation of housing income), the provision of shared equity arrangements and the introduction of housing bonds.