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A Revival of the Private Rental Sector of the Housing Market?: Lessons from Germany, Finland, the Czech Republic and the Netherlands

Author

Listed:
  • Rik de Boer

    (Dutch Ministry of the Interior and Kingdom Relations)

  • Rosamaria Bitetti

    (LUISS Guido Carli)

Abstract
This Working Paper studies ways to stimulate the private rental sector (PRS) of the housing market – and compares experiences with policies and reforms in Germany, the Netherlands, Finland and the Czech Republic. Although in many countries the PRS has decreased in importance since the Second World War, there are signs of a growing importance and possible ‘revival’ of the PRS. A well-functioning PRS and neutrality in housing policies can improve the functioning of the housing market – by promoting residential mobility, increasing housing options for households and generating competitive supply and affordable prices. The PRS can have positive effects on the economy and labour mobility and reduce inefficiencies and risks of owner-occupied and social housing. Trade-offs between goals in housing policies, and regulatory impediments to a level playing field between segments of the housing market (owner-occupancy, social rental, private rental) are analysed. The article outlines policy options in promoting a well-functioning PRS: lessons are drawn on tenancy security, rent-setting regulations, social housing, demand subsidies, fiscal measures for rental and owner-occupied housing and barriers for PRS supply. Experiences from the countries show that it is hard to create a level playing field – there are inefficiencies in all four countries. Nonetheless, there are many positive experiences of stimulating the PRS: reforms in Finland and the Czech Republic stimulated the PRS to become a competitive and important part of the housing market, and Dutch policies are adapted to stimulate a level playing field. The ‘resilience’ of the German housing system during the economic crisis shows that the large PRS and tenure neutrality have important stabilising effects on the German economy. Relancer le secteur locatif privé du marché du logement ? : Leçons tirées des expériences allemande, finlandaise, tchèque et néerlandaise Nous étudions dans ce Document de travail les mesures pouvant être prises pour stimuler le secteur locatif privé du marché du logement, et comparons les données d'expérience relatives aux politiques publiques et aux réformes mises en oeuvre en Allemagne, aux Pays-Bas, en Finlande et en République tchèque. Bien que l'importance du secteur locatif privé ait diminué dans de nombreux pays depuis la Seconde Guerre mondiale, certains signes montrent qu'il reprend de l'importance et qu'il est possible de le « relancer ». Un secteur locatif privé fonctionnant bien et des politiques du logement neutres peuvent améliorer le fonctionnement du marché de l'immobilier d'habitation – en favorisant la mobilité résidentielle, en élargissant l'éventail des possibilités de logement offertes aux ménages, et en débouchant sur une offre concurrentielle et des prix abordables. Le secteur locatif privé peut avoir des effets positifs sur l'économie et la mobilité des travailleurs, et réduire les problèmes d'inefficience et les risques inhérents aux logements occupés par leurs propriétaires et au logement social. Les arbitrages à opérer entre les différents objectifs des politiques du logement, et les obstacles réglementaires à l'application de règles du jeu équitables entre les différents segments du marché de l'immobilier d'habitation (logements occupés par leurs propriétaires, logement locatif social, logement locatif privé) sont analysés. L'article expose les options envisageables pour favoriser le bon fonctionnement du secteur locatif privé : des leçons sont tirées concernant la sécurité d'occupation, les règles de fixation des loyers, le logement social, les mécanismes de subventionnement de la demande, les mesures budgétaires en faveur du logement locatif et des propriétaires occupants, ainsi que les obstacles qui limitent l'offre sur le secteur locatif privé. L'expérience des pays considérés montre qu'il est difficile de mettre en place des règles du jeu équitables, puisqu'on observe des problèmes d'inefficience dans chacun des quatre pays examinés. Néanmoins, on relève de nombreux exemples positifs de stimulation du secteur locatif privé : les réformes mises en oeuvre en Finlande et en République tchèque ont permis au secteur locatif privé de devenir un segment concurrentiel et important du marché du logement, tandis que les politiques appliquées aux Pays-Bas sont adaptées pour égaliser les conditions de concurrence. La « résilience » dont a fait preuve le système allemand en matière de logement pendant la crise économique montre que l'ampleur du secteur locatif privé et la neutralité de l'action publique vis-à-vis du mode d'occupation des logements ont d'importants effets stabilisants sur l'économie allemande.

Suggested Citation

  • Rik de Boer & Rosamaria Bitetti, 2014. "A Revival of the Private Rental Sector of the Housing Market?: Lessons from Germany, Finland, the Czech Republic and the Netherlands," OECD Economics Department Working Papers 1170, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1170-en
    DOI: 10.1787/5jxv9f32j0zp-en
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    References listed on IDEAS

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    Cited by:

    1. Kath Hulse & Judith Yates, 2017. "A private rental sector paradox: unpacking the effects of urban restructuring on housing market dynamics," Housing Studies, Taylor & Francis Journals, vol. 32(3), pages 253-270, April.
    2. Sabina Źróbek & Elżbieta Zysk & Mirosław Bełej & Natalija Lepkova, 2020. "Do Women Affect the Final Decision on the Housing Market? A Case Study," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    3. Gohl, Niklas, 2019. "House prices and spatial mobility: Lock-in effects on the German rental market," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203557, Verein für Socialpolitik / German Economic Association.
    4. Christophe André, 2016. "Household debt in OECD countries: stylised facts and policy issues," Chapters from NBP Conference Publications, in: Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski & Joanna Waszczuk (ed.), Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis - 2015 edition, chapter 2, pages v1, 33-85, Narodowy Bank Polski.
    5. Źróbek-Różańska Alina & Szulc Lucyna, 2018. "Over a Million Student Tenants in Poland. Analysis of Preferences," Real Estate Management and Valuation, Sciendo, vol. 26(2), pages 104-113, June.
    6. Weber, Jan Philip & Lee, Gabriel, . "On the Measure of Private Rental Market Regulation Index and its Effect on Housing Rents: Cross Country Evidence," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 21, August.
    7. Falilou Fall & Christine Lewis, 2017. "Fostering Productivity for Income Convergence in the Czech Republic," OECD Economics Department Working Papers 1362, OECD Publishing.

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    More about this item

    Keywords

    Allemagne; Czech Republic; financement du logement; Finland; Finlande; Germany; housing finance; housing market; housing policies; housing prices; labour mobility; logement locatif privé; logement locatif social; marché du logement; mobilité de la main-d’oeuvre; Netherlands; Pays-Bas; politique du logement; private rental; prix des logements; République tchèque; social rental;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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