Smart Practices for Housing Finance Systems

Having reviewed the various forms of housing market failures and policy interventions, as well as major government failures, in this concluding chapter, we consider how the lessons learned can translate into smart practices for housing finance systems.1 Housing finance systems vary significantly across countries, and a policy that works well in a particular context may not have the same successful outcomes when transplanted to another setting. Thus, instead of the term “best practice”, with its connotation of specific techniques which apply in a blanket fashion across jurisdictions, I have chosen to use Eugene Bardach’s term, “smart practice” instead, as this draws attention to the importance of relevance of the environment and context in which housing policy operates. Looked at in this light, different housing policies will apply in different ways by themselves, as well as in conjunction with other policies, depending on the environment and context concerned. Specific housing outcomes in any given jurisdiction are therefore the result of the dynamic interplay between the general housing policy approach and the social, political, historical, institutional and regulatory contexts.