This study is concerned with questions about the purpose of regulatory frameworks; the impact of regulation, especially impacts on service outcomes and organisational culture; and the development of effective regulation. 

The objective of this positioning paper is to review the potential strengths and weaknesses of regulation as a means of expanding the not-for-profit sector in Australian housing. This review takes place at an interesting time in that the Commonwealth and state governments are in the process of negotiating a new compact that will establish a national regulatory system, and determining the long term approach to investment in affordable or social housing (these terms are defined in the introduction). This positioning paper should be published during a period of stakeholder consultation about a national model for regulation. The paper is not intended to advance a particular micro-policy objective (for example, by favouring one model of regulation over another). It is meant to assist policy-makers, through reviewing debates in this field. However, it is only a positioning paper. The research team believes that understanding of the underlying issues will be advanced through conducting empirical research to obtain the views and perspectives of regulators, those being regulated, and other key stakeholders. 

The first chapter introduces the hopes currently placed on regulation as a means of expanding the small social housing sector in Australia. It sets out criteria for determining whether this regulation is effective. Chapter 2 then reviews the case made for regulation in a number of policy reports (some by members of this research team). It reports on how regulation has developed, its achievements to date and the current state of play. Chapter 3 fills a gap in the policy literature by offering a critical perspective on the risks that arise in regulation. It considers the nature of regulatory burdens, the potential for ritualism and the problem of regulatory capture, all of which can happen in any area of government. Chapter 4 examines the problems that can arise as regulation develops through examining aspects of the provision of affordable housing in Britain, the Netherlands and the USA. The history of regulation in these countries illustrates how this can become burdensome, or captured by particular stakeholders, but that relaxing regulation can make it difficult to achieve social objectives. Chapter 5 sets out objectives for conducting empirical research about regulation in four Australian states using stakeholder perspectives as an analytic framework.

The paper concludes through considering how it is possible to develop effective regulation in the field of social housing. The key objective in regulating the provision of affordable housing is to balance the interests of different stakeholders, such as providers, tenants and investors. We argue that these groups will only welcome regulation if this is accompanied by significant, long term public investment in affordable housing. Moreover, the same problems and tensions that have occurred in other countries as regulation develops will arise in Australia. Policy-makers can, to some extent, prepare for these problems through establishing mechanisms to allow concerns from stakeholders to be addressed, and for the system of regulation to itself answer to regular reviews.

Authors: Max Travers, Rhonda Phillips, Vivienne Milligan and Tony Gilmour