Historically, public and affordable housing has been provided by the state in close conjunction with local authorities, public housing developers, and other social housing providers. Yet, affordable rental homes are now increasingly being managed, produced, or acquired by private equity firms and other institutional investors. In this contribution, we argue that ‘financialised privatisation’ is a helpful concept for understanding these shifts in state-finance compromises within the post-crisis affordable housing sector. Drawing on the case of England, we first discuss the major mechanisms of financialised privatisation and examine how an increasingly polymorphous affordable housing sector has emerged with a focus on multi-tenure and mixed-income housing tenures. We then discuss the possible challenges of this transformation and conclude that it remains very much a question whether a privately funded housing system will emerge that provides genuinely affordable housing and reduces inequalities.
As a developed welfare state, Finland has a long history of and continuing political support for housing policies, ranging from non-profit rental housing to owner-occupied housing supported by tax deductions. The current neoliberal critique, however, has questioned the efficiency and moral foundations of the established policies. This critique has taken as its target the difference between market rents and non-profit rents, citing this as an instance of ‘alternative costs’ for the city and, as such, as a form of subsidy that is unjustly distributed. However, the full picture of different housing subsidies – including those received by owner-occupiers – is not usually considered. The paper concludes that the current debate does not take into account the ways in which different subsidies interact in the approaches used to provide affordable housing in the Helsinki Metropolitan Area. As such the critique becomes tacitly political, although it is represented in terms of rationality and justice.