Performance Measures for the Dutch Social Housing Sector

The Dutch social housing sector is relatively large, with a share of 35% of the total housing stock. Dutch housing associations have been financially independent since the middle of the nineteen-nineties. They now have to balance their role as property investors on the one hand, which means making a return on their investments, with their role as housing associations on the other hand, with responsibilities for the affordability and quality of social housing for lower income groups. In the latter role they are spending the money that has been earned in their role as investors. It is essential to distinguish between the two roles in order to develop performance indicators for the Dutch social housing sector. In 2002 the Aedex / IPD Social Housing Index was introduced. This index is a first step in the development of performance indicators. The Aedex Index is consistent with the other IPD indices and also takes into account the social role of the housing associations. Recently the Social Housing Central Fund has published rates of return for the social housing sector. The results of the Aedex Index and those of the Social Housing Central Fund differ substantially. In this paper we compare these methods. We will combine the advantages of both methods and propose an alternative way to develop performance indicators for the Dutch social housing sector.