Public & Social Housing

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He argues that it will allow the discouragement of the profit renting besides achieving the high level of maturation. According to Kemney, this will therefore result into the…

Introduction

He further argues that by linking the cost renting with the competitive market mechanism, cost renting can actually shelter itself from the regulatory environment which can make it less competitive. (Kemeny)
He is in favor of combining both the profit as well as non-profit elements together however he favors to keep the non-profit motive as the major element in the social housing. Maturation is considered as the main element which can sustain the rent differentials in the long run. There is however, an element of suppression of the demand and supply dynamics of the social housing as the various policy options exercised only regulate the market and as such regulatory control through setting rent floors and caps can significantly alter the market.
Accordingly, the respective adjustment of the supply and demand mechanism in the market and the government intervention into the market through political management of the cost control mechanism can ensure the stability of the market.
An alternative mechanism presented by Kemney discusses about the unitary model wherein the suppression of the cost renting can be achieved through a comparison between the cost renting as well as the profit renting in the social housing. Thus the use of unitary model attempts to combine both the profit as well as the non-profit motives in order to stabilize the market and ensure that both aspects of the market remain within acceptable limits and help achieve the policy objectives of the social housing. The implementation of the unitary model is therefore, believed to be not creating the rent differentials which may occur in case of dualist model.
His arguments also tend to focus on the influence of different pressure groups and the corporatism in the social housing market. As such different countries have different rental systems in place owing to the overall nature of their culture. For example, the ...
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