A/68/289 mortgage interest deductibility) encourages it, undermining the attraction of rental investment. 52 30. Some European counties (such as the Netherlands and Sweden) employ a rental subsidy system to encourage rental developers or private owners through reduced interest programmes. 53 The long-standing subsidization scheme in Germany for both the social housing sector and private investors laid the foundation for a large private rental housing market. 31. In Austria, a sustained combination of supply-side polices has resulted in a large housing stock with reasonable rents, allocated to middle-income groups with additional means-tested benefits for lower-income groups. By providing discounted building land, grants, public loans and tax favoured investment, the federal, regional and municipal governments have strategically promoted the development of limited profit, cost-capped, and cost-rent housing, catering to a range of households including low-income households. 54 4. Demand subsidies 32. Some countries have been implementing rent assistance programmes in order to address affordability problems (see A/HRC/13/20/Add.4, paras. 10 and 25). 55 However, evidence indicates that such initiatives, in the absence of other policies regulating markets and assisting recipients of housing allowances, are not sufficient to provide adequate and affordable rental housing for low-income households. In countries in which rental supply is limited, subsidies schemes actually lead to an increase in rental prices 56 and shortages of rental stock for low-income earners. 57 Low income households receiving housing benefits often face difficulties in finding and keeping habitable accommodation in adequate locations with access to services, despite the extra purchasing power, owing to the low value of the benefits (given the rise in rental prices) and discrimination against vulnerable groups in the private rental market (see A/HRC/13/20/Add.4, paras. 17-26). 58 In addition, means testing for housing benefits is often complicated, targeting is not always effective and allocation procedures encourage corruption. 59 The tight conditioning of housing benefits on income levels has been criticized for failing to reach all beneficiaries (for example, only 40 per cent of private renters living in poverty in England are in __________________ 52 53 54 55 56 57 58 59 12/24 Pomeroy and Godbout, “Development of the rental housing market” (see footnote 50 above), p. 20. According to the response received from Slovakia to the questionnaire on security of tenure sent by the Special Rapporteur on 22 March 2013. Wolfgang Amann, Julie Lawson and Alexis Mundt, “Structured finance allows for affordable rental housing in Austria”, Housing Finance International, vol. 23, No. 3 (June 2009), p. 14. According to the response received from Finland to the questionnaire on security of tenure sent by the Special Rapporteur on 22 March 2013. In some countries, housing benefits took the form of vouchers — a method that has been used in the United Kingdom and in the United States for many years. See L. Winnick, “The triumph of housing allowance programs: how a fundamental policy conflict was resolved”, Cityscape, vol. 1, No. 1 (September 1995), pp. 95-121. “Housing benefit cuts”, Crisis Policy Briefing, May 2012. Available from http://www.crisis.org. uk/data/files/publications/Crisis%20Briefing%20-%20Housing%20Benefit%20cuts.pdf), 9. Dugald Monro, “Public rental Housing policy: learning the lessons from overseas”, Research Paper 6, 1997. See also Kemp, “Low-income tenants” (see footnote 40 above), p. 1025. Council of Europe, Housing Policy and Vulnerable Social Groups (Strasbourg, 2008), p. 50. 13-42184

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