Projects / Programmes
Model for the implementation of an efficient rental housing market in Slovenia
| Code |
Science |
Field |
Subfield |
| 5.08.00 |
Social sciences |
Urbanism |
|
| Code |
Science |
Field |
| T260 |
Technological sciences |
Physical planning |
| Code |
Science |
Field |
| 5.09 |
Social Sciences |
Other social sciences |
Rental housing, non-profit rented housing, private rented housing, rental housing market, housing policy
Researchers (4)
Organisations (1)
Abstract
The implementation of the 1991 Housing Act which, among others, enabled the privatisation of the previous public housing stock under very favourable conditions, consequently led to a sharp decrease of the size of the social housing stock. These processes resulted in significant changes in tenure structure with high increases in the share of homeownership as well as in the proportion of private rented housing.
Notwithstanding these events, the private rented sector still continues to be totally ignored in Slovenia. The 2002 census data show the following tenure structures: private property owned by natural person – 92.4%, non-profit rented dwellings in state ownership – 6.3% and other – 1.3%. Such is the traditional practice of presentation of tenure data in Slovenia. Official records do not make any distinction between owner-occupied dwellings on the one hand and privately owned rental dwellings on the other.
So what, then, does such presentation of data imply? The major questions that arise to which precise answers are required are the following: “Does Slovenia have a rental market at all?” If the answer is yes, then what is the actual size of the rental housing stock? Why is the current situation such? And finally, which measures need to be implemented in order to develop an efficient rental housing market?
The current attitude of the state to this housing sector shows that policy makers do not realise the importance and complementary role that private rented housing plays in guaranteeing an additional supply of various dwelling types. The pilot survey that we conducted at the Urban Planning Institute in this area in 2001 revealed that this housing sector is growing in importance and plays an especially important role in Ljubljana, the capital city. The introduction of appropriate and positive housing policy measures in this area is urgent. All measures introduced for the purpose of increasing the supply of private rented dwellings would have a direct impact on better access to non-profit (social) housing. The regulation of the private rented sector and the resulting increase of the supply of these dwellings would undoubtedly positively impact on the reduction of the financial burden of the state in the area of housing care. It is commonly recognised in Slovenia that the list of house-seekers that submit applications to local authority competitions for the allocation of non-profit rental housing, always includes some applicants that would be otherwise able to solve their housing problem on their own, had there been an efficient and adequately supplied housing market. In countries where public private partnerships successfully operate, it is almost impossible to imagine a housing system which operates without the active involvement of the private rented sector as one of the major providers of rental housing.
Our hypothesis is that should the state fail to introduce and implement the measures urgently required to guarantee the basic conditions for the efficient operation of the private rented sector, this will lead to an even further increase in the disequilibrium between demand and supply that has prevailed since the beginning of the 1990s. Meanwhile, the state will continue to implement various measures (most of which have been found to be inefficient) in the form of emergency solutions under circumstances of a shortage of supply, also for those house seekers, who would otherwise be capable of solving their housing needs on their own.
Given the situation described above, a thorough analysis of the circumstances and activities and the regulation of the private rental sector are urgent. The principle aim of the research is to provide the necessary basis for the introduction of an appropriate private rented system which will guarantee an efficient operation of the private rented market in Slovenia.
Significance for science
With the adoption of the Global Strategy for Shelter to the Year 2000 in 1988, the General Assembly of the United Nations laid down the fundamental guidelines to all countries interested in the formulation of new policies to meet their housing needs. In order to achieve the goal of providing shelter for all by year 2000, the strategy recommended the adoption of the “enabling principle” instead of the “providing principle”. The legal basis for the introduction of the enabling principle in Slovenia was provided by the 1991 Housing Act which was adopted soon after the changing of the socio-economic system. By adopting this principle, the welfare policies, with which the state played a more active role in the provision of housing for the population, were removed from the forefront and substituted with housing care deregulation policies. The new housing policy aimed at putting emphasis on providing incentives for individual initiative intending, among others, to facilitate an enhancement of the role of the private rented housing market. Identical or similar housing policy measures were introduced also in most of the former socialist countries of Central and Eastern Europe. However, the literature review generally shows that the post-socialist countries have not yet been able to put in place appropriate systems for the efficient operation of the private rented sector. The findings of the research project with which we examined the characteristics and nature of operation of the private rented sector in Ljubljana, the capital city of Slovenia, present a suitable basis for the eventual execution of comparative analyses of the situations with other post-socialist countries. Such comparative analyses would importantly contribute to setting up a viable theoretical framework for the scholarly discussion and understanding of the situations that currently prevail in the post-socialist countries It is expected that the model and recommendations which we have designed and presented in this research will be applicable (with the necessary adjustments depending on the specificity of each country) also in other former socialist countries with similar socio-political history and similar problems with the guaranteeing of the conditions required for the efficient operation of the private rented sector.
Significance for the country
The comprehensive legal and institutional regulation of the private rented housing sector will contribute to the following: - encouragement of landlords to offer their property on the private rental market in a more transparent manner; - better use of the existing housing stock; - reduction of the share of unoccupied dwellings; - an increase in the supply of rented dwellings and the consequent lowering of rents; - easier assessment of the situation regarding supply and demand, which is vital information for estimating and planning housing needs: - the potential increase of the mobility of citizens, which would result in greater flexibility in the labour market. In addition to these advantages, it is vital to recognise that due to an increasingly shrinking social housing sector (especially due to welfare state retrenchment policies) a growing number of low-income households are being forced to solve their housing problem within the private rented sector. As such, the private rented sector must assume and play a more complementary role in the provision of long-term housing alternatives for those who are not able to become home owners and, due to a variety of reasons, cannot enter the dwindling social housing sector. Furthermore, current trends at the international level such as globalisation and EU enlargement (together with its founding principles of European integration) require that European countries provide the basic infrastructures that facilitate labour market flexibility and the free mobility of citizens. The existence and efficient operation of the PRS has a crucial role to play in the guaranteeing of the anticipated flexibility and mobility. In order to be able to equally contribute to the implementation of these principles, Slovenia needs to introduce an appropriate system that will guarantee the efficient operation of the private rented sector.
Most important scientific results
Annual report
2012,
2013,
final report,
complete report on dLib.si
Most important socioeconomically and culturally relevant results
Final report,
complete report on dLib.si
