53 percent of the total amount that the Flemish government spends on housing subsidies ends up with the 40 percent highest incomes. This has emerged from research by Steunpunt Wonen, a partnership between four universities. The abolition of the housing bonus will change this in the long term, predicts researcher Kristof Heylen.
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“Those who already have will get even more,” says the Matthew effect. And it turns out to be true in 2018 for all kinds of housing subsidies, Steunpunt Wonen notes. This research group has examined various housing subsidies from the Flemish government, ranging from social rent through rent premiums and the housing bonus to renovation and improvement premiums, and evaluated which groups those subsidies went to in 2018. In addition, the group has also investigated the evolution of subsidies since 2008.
Housing bonus
Tax benefits in particular lead to the Matthew effect: 70 percent of such benefits end up with 40 percent of the highest incomes. Of the full total amount of housing subsidies, slightly more than half, 53 percent, also goes to the 40 percent highest incomes. It is expected that the abolition of the housing bonus will ensure that the distortion is canceled out in the medium term.
Social housing subsidies have increased by 9 percent since 2013. The average rent for social housing has remained roughly the same in the period 2013-2018, while the market rental value has increased, and is likely to continue to increase, due to the impact of new construction and renovation in this sector.
The average housing benefit in 2018 turns out to be 16 percent lower than in 2013. Moreover, this decrease is most pronounced in the group of single people and young people. As a result, the average net rent has increased by 23 percent between 2013 and 2018, and that can of course jeopardize the affordability of rent.
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