Sub-Section 1.1.3 examined the different ‘housing markets’ that are relevant for this thesis. Following Priemus (1984), we concluded that the social rent- ed sector is a housing services market, which consists of a mobile part and an immobile part. The level of competition in the mobile housing services market can vary. In case of pressure, supply exceeds demand, and proprie- tors have to compete for tenants. In case of suction, demand exceeds sup- ply, and candidate tenants have to compete for dwellings (Kornai, 1971). Giv- en the restrictedness of the market to a specific area, and the immobility of residents, Priemus indicates that the mobile housing services market can be best referred to as oligopoly. The delivery of the most important component of the housing service, the dwelling, is subject to the housing allocation sys- tem. Housing associations and municipalities agree on rules for how vacant rented homes should be allocated, and these differ from one municipality or region to another. Some municipalities and associations have dozens of de- tailed rules, whereas others suffice with a few guidelines, and sometimes va- cated dwellings are even allocated in a lottery. After registering, house seek- ers are entitled to apply for available housing, as publicised by the housing association(s). Later, after viewing, they can decide whether to accept the dwelling. Furthermore, ‘suitability criteria’ are often defined, with require- ments relating to the age, income and family structure of house seekers. The system has some known disadvantages. A house-seeker in one village may succeed almost immediately, while enormous waiting lists continue to grow in the neighbouring city. Moving from one town to another is usually disas- trous for one’s position on a waiting list. We can thus conclude that in the case of suction in the market (which is often the situation in Dutch urban areas), the customer’s choice – particularly that of starters – is extremely lim- ited, which is to say that the model is strongly supply-driven.
Like citizens in municipalities, candidate tenants also shift back and forth between being between ‘captives’, ‘clients’ and ‘consumers’, as mentioned above in Section 4.3. Tenants in a tight housing market (suction) are almost forced to opt for any housing association with a vacant dwelling. A tenant
in a relaxed housing market (pressure) has more freedom of choice and is a ‘consumer’.
The immobile housing services market concerns the relationship between the tenant and the proprietor (in this thesis, the housing association). This situation implies high exit barriers for tenants, undermining their competi- tive position. A tenant can be considered to be a ‘captive’. To a large extent, tenants are dependent on housing associations with regard to rent increases and the maintenance policy. As soon as a resident becomes a tenant, he or she is generally forced to endure planned maintenance. Sometimes there will be a choice of finish and result, and in these cases the tenant is more of a ‘cli- ent’. The tenant has more choice when it comes to reactive maintenance. He or she has more influence on the timing of the service, and has some say in whether the service is provided. The same is true of service maintenance, and in some cases, (parts of) void repairs. Because tenants are frequently ‘cap- tives’, the services that social landlords tend to impose upon tenants will act as ‘dissatisfiers’: negative experiences weigh more heavily than positive ones. Increasing tenant participation via the provision of options for maintenance may relieve this captive position.
Currently, tenants are being presented with more choice regarding main- tenance, besides compulsory matters. Residents’ committees are becoming involved with planning and with matters such as, for example, choosing the colours of external walls. Individual tenants can also be approached, and de- cisions are sometimes taken by a majority vote. Individual tenants are often given options for the maintenance of sanitary facilities and kitchens. For in- stance, a tenant may be able to choose taps or the tiles, possibly for an addi- tional price.
Institutions have been created, however, to support what is basically the tenuous position of tenants. A special aspect of the position of end clients in the social rented sector is their ability to be involved in the management of and policy on landlords, by means of the Tenant and Landlord Consulta- tion Act and the BBSH. The Tenant and Landlord Consultation Act sets out the rights of tenants’ organisations, which represent tenants in consultation with landlords. The Tenant and Landlord Consultation Act (Commissie Zeggenschap en Versterking positie huurders(-organisaties), 2005) covers:
the areas in which consultation or advice is required;
the tenants’ organisation’s right to a qualified opinion on policy changes in these areas;
a financial contribution from the landlord to the tenants’ organisation. The areas in which, on the tenants’ organisation’s request, the landlord has to provide information and allow consultation are (Commissie Zeggenschap en Versterking positie huurders(-organisaties), 2005):
maintenance and management policy for dwellings;
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letting and allocation policy;
the general conditions of the tenancy agreement; plans for rents in the coming years;
the package of services and the service charges; the demolition of dwellings; and
the sale and/or encumbrance (with mortgage) of dwellings.
The BBSH specifically addresses the activities of housing associations. Regard- ing the Tenant and Landlord Consultation Act, the BBSH prescribes a com- plaints committee and the provision by the landlord of facilities for residents’ committees. Additional subjects for consultation and advice are also identi- fied. These are liveability, disposal/encumbrance/demolition, and the housing of specific target groups.
In addition the law, institutional support for tenants is offered by vari- ous organisations. The Dutch Union of Tenants (De Nederlandse Woonbond) is an independent national association that stands up for tenants’ interests. It successfully supports local residents’ committees, lobbies the government in support of tenants’ interests, and advises individual tenants. Maintenance is an important issue for De Woonbond. By far most of the advice that they have given to tenants and residents’ committees is related to maintenance (Vereniging Nederlandse Woonbond, 2006). An example of an achievement claimed by De Woonbond that is embedded in law is the ‘gebrekenregeling’ [arrangement of defects], which has been set up in order to stimulate housing associations to perform maintenance (see Sub-Section 1.1.5 for a more com- prehensive description of this arrangement).
In Sub-Section 4.4.2, we noted that housing associations’ target groups spend on average a large proportion of their income on rent. In addition to the rent, energy bills are becoming increasingly important for tenants. It is, however, the housing association that invests in the quality of the thermal isolation, while the tenant takes advantages of the investments. In other words, the relationship between the costs and benefits of investments is a dif- ficult one for housing associations, utility companies and tenants to manage. Presenting the benefits of thermal isolation to tenants in combination with rent increases would provide an extra incentive for housing associations to invest in thermal isolation and thus improve housing quality. The implication, however, is that a housing association’s influence on its tenants’ cost of living can extend beyond rent alone.
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