Risk-assessment practices in the private rental sector : implications for low-income renters (Final Report)

This report focuses on risk-assessment practices in the private rental market, with particular consideration of their impact on low-income renters. It is based on the fieldwork undertaken in the second stage of the research process that followed completion of the Positioning Paper. The key research question this study addressed was: What are the various factors included in ‘risk-assessments’ by real estate agents in allocating ‘affordable’ tenancies? How are these risks quantified and managed? What are the key outcomes of their decision-making? The study builds on previous research demonstrating that a relatively large proportion of low-cost private rental accommodation is occupied by moderate- to high-income households (Wulff and Yates 2001; Seelig 2001; Yates et al. 2004). This is occurring in an environment where the private rental sector is now the de facto main provider of rental housing for lower-income households across Australia (Seelig et al. 2005) and where a number of factors are implicated in patterns of ‘income–rent mismatching’. These include ongoing shifts in public housing assistance; issues concerning eligibility for rent assistance; ‘supply’ factors, such as loss of low-cost rental stock through upgrading and/or transfer to owner-occupied housing; patterns of supply and demand driven largely by middle- to high-income owner-investors and renters; and patterns of housing need among low-income households for whom affordable housing is not appropriate. In formulating a way of approaching the analysis of ‘risk-assessment’ in rental housing management, this study has applied three sociological perspectives on risk: Beck’s (1992) formulation of risk society as entailing processes of ‘individualisation’; a socio-cultural perspective which emphasises the situated nature of perceptions of risk; and a perspective which has drawn attention to different modes of institutional governance of subjects, as ‘carriers of specific indicators of risk’. The private rental market was viewed as a social institution, and the research strategy was informed by ‘institutional ethnography’ as a method of enquiry. The study was based on interviews with property managers, real estate industry representatives, tenant advocates and community housing providers. The primary focus of inquiry was on ‘the moment of allocation’. Six local areas across metropolitan and regional Queensland, New South Wales, and South Australia were selected as case study localities. In terms of the main findings, it is evident that access to private rental housing is not just a matter of ‘supply and demand’. It is also about assessment of risk among applicants. Risk – perceived or actual – is thus a critical factor in deciding who gets housed, and how. Risk and its assessment matter in the context of housing provision and in the development of policy responses. The outcomes from this study also highlight a number of salient points: 1.There are two principal forms of risk associated with property management: financial risk and risk of litigation. 2. Certain tenant characteristics and/or circumstances – ability to pay and ability to care for the rented property – are the main factors focused on in assessing risk among applicants for rental housing. Signals of either ‘(in)ability to pay’ and/or ‘(in)ability to care for the property’ are almost always interpreted as markers of high levels of risk. 3. The processing of tenancy applications entails a complex and variable mix of formal and informal strategies of risk-assessment and allocation where sorting (out), ranking, discriminating and handing over characterise the process. 4. In the eyes of property managers, ‘suitable’ tenants can be conceptualised as those who are resourceful, reputable, competent, strategic and presentable. 5. Property managers clearly articulated concern about risks entailed in a number of characteristics or situations. Being on a low income was the principal and overarching factor which agents considered. Others included: - unemployment - ‘big’ families; sole parent families - domestic violence - marital breakdown - shift from home ownership to private rental - Aboriginality and specific ethnicities - physical incapacity - aspects of ‘presentation’. The financial vulnerability of applicants in these groups can be invoked, alongside expressed concerns about compromised capacities to manage income and/or ‘care for’ the property, as legitimate grounds for rejection or a lower ranking. 6. At the level of face-to-face interaction between the property manager and applicants, more intuitive assessments of risk based upon past experience or ‘gut feelings’ come into play. These judgements are interwoven with more systematic procedures of tenant selection. The findings suggest that considerable ‘risk’ is associated with low-income status, either directly or insofar as it is associated with other forms of perceived risk, and that such risks are likely to impede access to the professionally managed private rental market. Detailed analysis suggests that opportunities for access to housing by low-income householders also arise where, for example: - the ‘local experience’ of an agency and/or property manager works in favour of particular applicants - applicants can demonstrate available social support and financial guarantors - an applicant’s preference or need for longer-term rental is seen to provide a level of financial security for the landlord - applicants are prepared to agree to specific, more stringent conditions for inspection of properties and review of contracts - the particular circumstances and motivations of landlords lead them to consider a wider range of applicants - In particular circumstances, property managers are prepared to give special consideration to applicants who appear worthy, albeit ‘risky’. The strategic actions of demonstrating and documenting on the part of vulnerable (low-income) tenant applicants can improve their chances of being perceived as resourceful, capable and ‘savvy’. Such actions are significant because they help to persuade property managers not only that the applicant may have sufficient resources (personal and material) but that they accept that the onus is on themselves to show they are reputable, and that they have valued ‘competencies’ and understand ‘how the system works’. The parameters of the market do shape the processes of risk-assessment and, ultimately, the strategic relation of power between property manager and the tenant applicant. Low vacancy rates and limited supply of lower-cost rental stock, in all areas, mean that there are many more tenant applicants than available properties, creating a highly competitive environment for applicants. The fundamental problem of supply is an aspect of the market that severely limits the chances of access to appropriate and affordable housing for low-income rental housing applicants. There is recognition of the impact of this problem of supply. The study indicates three main directions for future focus in policy and program development: providing appropriate supports to tenants to access and sustain private rental housing, addressing issues of discrimination and privacy arising in the processes of selecting suitable tenants, and addressing problems of supply.

Constructing quality : the Hong Kong Housing Department journey

This paper explores the ‘journey’ along the ‘never ending quality road’ undertaken by the Hong Kong Housing Department over the last 15 years. It briefly covers the early history of public housing in Hong Kong, the catalytic effect brought about by the discovery of the infamous 26 sub-standard blocks in the mid-80s leading to the subsequent major improvements to process control and structural quality in the period 1985-1990. It then moves onto a discussion of initiatives taken since 1991, including the formation of the List of Building Contractors and the implementation of the Performance Assessment Scoring System (PASS). The paper ends with a discussion of the current status of quality issues within the Department and touches on future initiatives being developed to further enhance the quality of public housing in Hong Kong.

Promoting creativity in education : from policy to practice : an Australian perspective

In the 21st century, our global community is changing to increasingly value creativity and innovation as driving forces in our lives. This paper will investigate how educators need to move beyond the rhetoric to effective practices for teaching and fostering creativity. First, it will describe the nature of creativity at different levels, with a focus on personal and everyday creativity. It will then provide a brief snapshot of creativity in education through the lens of new policies and initiatives in Queensland, Australia. Next it will review two significant areas related to enriching and enhancing students’ creative engagement and production: 1) influential social and environmental factors; and 2) creative self-efficacy. Finally, this paper will propose that to effectively promote student creativity in schools, we need to not only emphasise policy, but also focus on establishing a shared discourse about the nature of creativity, and researching and implementing effective practices for supporting and fostering creativity. This paper has implications for educational policy, practice and teacher training that are applicable internationally.

In Pursuit of Excellence : A Policy Driven Systemic Initiative to Embed Gifted Education

Embedding gifted education practices requires major professional development strategies supported by transparent, credible and enforceable policy. This paper describes an analysis of a state-wide initiative involving the establishment of a series of schools tasked to develop and disseminate gifted education principles. The authors have been involved with this initiative at a number of levels over a ten-year period. Their involvement culminated in a commissioned review of the program. Extensive qualitative data were purposively collected from all stakeholders and the effectiveness of the initiative is examined from a theoretical framework of policy development and excellence. The findings summarised in this proposal, indicate the achievement of excellence at a systemic level was constrained by lack of vision, leadership and commitment to long term achievements of excellence. At a local level evidence exists that excellence can be manifested when there is synchronicity of vision, purpose, decisions, and actions.

Whither culture? Australian horror films and the limitations of cultural policy

Cultural policy that attempts to foster the Australian film industry’s growth and development in an era of globalisation is coming under increasing pressure. Throughout the 2000s, there has been a substantial boom in Australian horror films led by ‘runaway’ horror film Saw (2004), Wolf Creek (2005), and Undead (2003), achieving varying levels of popularity and commercial success worldwide. However, emerging within a national cinema driven by public subsidy and valuing ‘quality’ and ‘cultural content’ over ‘entertainment’ and ‘commercialism’, horror films have generally been antithetical to these objectives. Consequently, the recent boom in horror films has occurred largely outside the purview and subvention of cultural policy. This paper argues that global forces and emerging production and distribution models are challenging the ‘narrowness’ of cultural policy – a narrowness that mandates a particular film culture, circumscribes certain notions of value and limits the variety of films produced domestically. Despite their low-culture status, horror films have been well suited to the Australian film industry’s financial limitations, they are a growth strategy for producers, and a training ground for emerging filmmakers.

Framing Culture : Criticism and Policy in Australia

How is contemporary culture 'framed' - understood, promoted, dissected and defended - in the new approaches being employed in university education today? How do these approaches compare with those seen in the public policy process? What are the implications of these differences for future directions in theory, education, activism and policy? Framing Culture looks at cultural and media studies, which are rapidly growing fields through which students are introduced to contemporary cultural industries such as television, film and video. It compares these approaches with those used to frame public policy and finds a striking lack of correspondence between them. Issues such as Australian content on commercial television and in advertising, new technologies and new media, and violence in the media all highlight the gap between contemporary cultural theories and the way culture and communications are debated in public policy. The reasons for this gap must be investigated before closer relations can be established. Framing Culture brings together cultural studies and policy studies in a lively and innovative way. It suggests avenues for cultural activism that have been neglected in cultural theory and practice, and it will provoke debates which are long overdue.

How can secondary schools enact assessment policy for students with disabilities?

This report investigates effective ways secondary schools can enact curriculum policy related to assessment for learning with students with disabilities. Assessment for learning (AfL) has gained recent importance through inclusion in assessment policy. AfL is the frequent assessments of student progress that identifies learning needs and informs future teaching and learning. The application of AfL principles provides opportunity for teachers to improve the achievement of students with disabilities. AfL is an element of the Queensland P-12 Curriculum Framework. School leaders can use this report’s suggestions to make sense of policy; develop common and shared beliefs and actions; organize professional learning opportunities; arrange collaborative curriculum planning to influence staff to effectively implement curriculum policy.

Inclusive Education Statement - policy analysis

This study analyses the Inclusive Education Statement – 2005, Education Queensland. (Appendix 1). The Statement was a product of the Queensland State Government response to Federal Legislation. The Federal Disability Discrimination Act (DDA), 1992 and the subsequent Standards for Education 2005, sought to eliminate discrimination against people with disabilities. Under Section 22 of the Act, it became unlawful for an educational authority to discriminate against a person on the grounds of the person’s disability.

Can risk management boost the supply of affordable housing development and management?

Purpose: The purpose of this paper is to analyse the risk management process conducted by some private and not-for-profit affordable housing providers in South East Queensland, and draw conclusions about the relationship between risk assessments/responses and past experiences.----- Design/methodology/approach: In-depth interviews of selected non-government housing providers have been conducted to facilitate an understanding of their approach to risk assessment in developing and in managing affordable housing projects. Qualitative data are analysed using thematic analysis to find emerging themes suggested by interview participants.----- Findings: The paper finds that informal risk management process is used as part of normal business process in accordance with industry standards. Many interviewees agree that the recognition of financial risk and the fear of community rejection of such housing projects have restrained them from committing to such investment projects. The levels of acceptance of risk are not always consistent across housing providers which create opportunities to conduct multi-stakeholder partnership to reduce overall risk.----- Research limitations/implications: The paper has implications for developers or investors who seek to include affordable housing as part of their portfolio. However, data collected in the study are a cross-section of interviews that will not include the impact on recent tax incentives offers by the Australian Commonwealth Government.----- Practical implications: The study suggests that implementing improvements to the risk mitigation and management framework may assist in promoting the supply of affordable housing by non-government providers.----- Originality/value: The focus of the study is the interaction between partnerships and risk management in development and management of affordable rental housing.

Analysing policy values in a knowledge economy

This fascinating handbook defines how knowledge contributes to social and economic life, and vice versa. It considers the five areas critical to acquiring a comprehensive understanding of the knowledge economy: the nature of the knowledge economy; social, cooperative, cultural, creative, ethical and intellectual capital; knowledge and innovation systems; policy analysis for knowledge-based economies; and knowledge management. In presenting the outcomes of an important body of research, the handbook enables knowledge policy and management practitioners to be more systematically guided in their thinking and actions. The contributors cover a wide disciplinary spectrum in an accessible way, presenting concise, to-the-point discussions of critical concepts and practices that will enable practitioners to make effective research, managerial and policy decisions. They also highlight important new areas of concern to knowledge economies such as wisdom, ethics, language and creative economies that are largely overlooked.

Art, popular culture and cultural policy: variations on a theme of John Carey

The article presents a criticism of the accounts of John Carey in his book entitled "The Intellectuals and the Masses." The author focuses on Carey's argument that the art is not an eternal category but an invention of the late eighteenth century and it no longer has any intellectual legitimacy other than that of provoking feelings which are no more and no less valuable than those provoked by any other form of entertainment or physical activity

A review of the economic consequences of a policy of universal leucodepletion as compared to existing practices

Leucodepletion, the removal of leucocytes from blood products improves the safety of blood transfusion by reducing adverse events associated with the incidental non-therapeutic transfusion of leucocytes. Leucodepletion has been shown to have clinical benefit for immuno-suppressed patients who require transfusion. The selective leucodepletion of blood products by bed side filtration for these patients has been widely practiced. This study investigated the economic consequences in Queensland of moving from a policy of selective leucodepletion to one of universal leucodepletion, that is providing all transfused patients with blood products leucodepleted during the manufacturing process. Using an analytic decision model a cost-effectiveness analysis was conducted. An ICER of $16.3M per life year gained was derived. Sensitivity analysis found this result to be robust to uncertainty in the parameters used in the model. This result argues against moving to a policy of universal leucodepletion. However during the course of the study the policy decision for universal leucodepletion was made and implemented in Queensland in October 2008. This study has concluded that cost-effectiveness is not an influential factor in policy decisions regarding quality and safety initiatives in the Australian blood sector.