How to abolish public housing: Implications and lessons from public management reform

The paper examines how public or municipal housing in England and Wales is being abolished and transferred into the housing association sector. A new public management (NPM) analytical framework is adopted which provides seve n dimensions, disaggregation, competition, private sector management, econo my, hands-on top management, standards of performance and measurement of ou tputs. Overlying these dimensions it is argued that there are two NPM meta- themes-externalisation (which relates to the first two characteristics) and managerialisation (the latter five). Hypotheses are developed to explain t he differential impact of NPM reforms on the municipal housing and housing association sectors. These suggest that housing associations are externalis ed and highly managerialised organisations whereas local authorities displa y lower levels of externalisation and limited managerialisation. Analysis o f the transfer process indicates that externalisation is driven by politica l and ideological approaches to public housing in addition to NPM dimension s, but that as local authorities transfer their stock into the housing asso ciation sector they are also likely to develop into similarly managerialise d organisations. In conclusion the NPM framework is demonstrated to need fu rther development whilst systematic research is required on management refo rm in social housing provision. The lesson to emerge on how to abolish publ ic housing suggests the following policy formula: starve it of resources, c reate a hostile environment and wait, in the goodness of time it will aboli sh itself!