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Towards diffuse forms of
public governance:
service design, open data and disruption
in the private rented market.
Helena Polati Trippe, PhD Fellow Royal College of Art
Lais de Almeida, RentSquare
Iban Benzal, RentSquare
Services in a service design context
“[C]omplex,	
  hybrid	
  artefact[s].	
  	
  They	
  are	
  made	
  up	
  of	
  things	
  -­	
  
places	
  and	
  systems	
  of	
  communication	
  and	
  interaction	
  -­	
  but	
  also	
  
of	
  human	
  beings	
  and	
  their	
  organisations.	
  Permeated	
  with	
  
human	
  activity	
  as	
  they	
  are,	
  they	
  can	
  never	
  be	
  reduced	
  to	
  the	
  
simplicity	
  of	
  mechanical	
  entities.	
  	
  Like	
  all	
  complex	
  entities	
  they	
  
are	
  largely	
  un-­designable.	
  	
  On	
  the	
  other	
  hand,	
  for	
  this	
  very	
  
reason,	
  precisely	
  because	
  they	
  appear	
  to	
  be	
  un-­designable,	
  it	
  is	
  
both	
  useful	
  and	
  necessary	
  today	
  to	
  develop	
  a	
  new,	
  service-­
oriented	
  design	
  culture	
  and	
  practice.” 	
  
Manzini 2011
Services in the public policy design
“the	
  design	
  of	
  services	
  has	
  a	
  long	
  history	
  and	
  tradition	
  in	
  the	
  
public	
  realm	
  …	
  [and]	
  services	
  remain	
  Eirst	
  and	
  foremost	
  
instruments	
  for	
  policy-­making.”	
  	
  	
  
Junginger 2013
Implications of Open Data in the design process and outcome
Through a disruptive platform for the PRS
1. Bring transparency into a deregulated market
2. Addressing market imbalances for social impact
3. Relationship service design & policy implementation/design
4. Role of service design - new mechanisms for policy delivery
The PRS prior to the 1988 Act
Up until the 1988 Housing Act, the private rented sector was tightly
regulated through legislation which imposed restrictions on rent levels
and ensured long term security of tenure. These tight restrictions meant
the private rented sector offered low return rates and a poor
investment option to landlords (Haffner et al. 2009). According to Kemp
(2004) the net effect of these restrictions on rents and the security of
tenure, meant landlords seized every opportunity to exit the market.
The Private Rented Sector since then….
The 1988 Housing Act removed any regulation over rents and, in
introducing contractual agreements between landlords and tenants,
shifted these responsibilities to these individual transactions. It
removed control on rents, which could now be set freely according to
market prices and tenants’ ability to pay. The contractual agreements, in
the form of assured shorthold tenancies or fixed contracts set out
expected quality standards of accommodation and ensured a minimum 6
months in security of tenure to any tenant renting the PRS. These
individual contracts became the principal means and mechanism to
ensure quality of accommodation in the sector.
The size of the PRS
From	
  from	
  1991	
  to	
  2001	
  the	
  number	
  of	
  households	
  in	
  the	
  
sector	
  rose	
  by	
  27%	
  and	
  the	
  number	
  of	
  people	
  in	
  the	
  sector	
  
rose	
  by	
  44%	
  (Ball	
  2004,	
  10).	
  	
  A	
  recent	
  study	
  by	
  Scanlon	
  et	
  al	
  
(2014)	
  suggests	
  the	
  situation	
  in	
  cities	
  like	
  London	
  is	
  
particularly	
  acute	
  with	
  the	
  size	
  of	
  the	
  sector	
  more	
  than	
  
doubling	
  since	
  1991	
  to	
  27%	
  (11).	
  	
  
A glance at the market
40%
Single property Landlords
Private Landlords Organizations
“Currently the sector is dominated by small scale individual
investors. According to a 2010 survey carried out by
DCLG 89% of landlords are individuals (as opposed to
organisations), most of whom have very small portfolios.
one. Single property landlords let 40% of all home in the
sector.” (Resolution Foundation & CIH, 2013)
3%
Private Landlords
more than 5 properties
46%
Private Landlords
2 to 4 properties
Where lies the problem?
Lack of regulation
& no information
Speculative market
Pressure on tenants
(increase
competitiveness)
Mismatch between
speculative capital market
navigate, and get
advice
Lack of investment into
properties and visibility
of new regulations
Low quality of rental
properties
Stressful &
time-consuming
experience
Accepts higher price,
and compromises at
personal costs
High entry fees and
deposits, not all will be
High void rates Impact on returns Incidence of bad debts
and hardship
High arrears rates
Reference check
doesn’t consider
history
Tenants & Landlords
disassociated of
process in rental
Negative impact on
quality of life and well
being
Possible hardship
and debt
12
A glance at the private rental sector
23%
in receipt
of full welfare
17%
some form
of welfare
60%
work full-time
(EHS 2013)
51% of renters under 35 years
39% cut back on heating and
35% on foodto cover costs
10% of children change schools
due to changes in tenancy
duration in PRS
20% don’t have central heating
1 in 5 with young children
(EHS 2013), (Shelter 2013)
(Generation Rent)
(Shelter, 2012)
(Resolution Foundation, 2013)
Negative impact on society
Private
Rental
Sector
Health
Economic
Productivity
Family
Formation
Government
Bill
Poverty &
Social
Inequality
IMPACT ON SOCIAL MOBILITY
AND CHILD POVERTY
(Social Mobility and Child
Poverty Commission, 2014)
COSTS of £10Bi TO WELFARE
BUDGET
(Department of Work and
Pensions, 2014)
IMPACT ON
RECRUITMENT OF
ENTRANTS TO MARKET
(CBI, 2013)
HEALTH CONCERNS DUE TO
POOR QUALITY HOUSING
(Resolution Foundation, 2014 )DELAY IN FAMILY
FORMATION
(Doling and Elsinga, 2013)
The PRS from a policy making and design perspective
Complex
Fragmented
Resistant to change
From a design perspective a “wicked problem”?
Rent	
  Square	
  is	
  a	
  web	
  based	
  
platform	
  where	
  landlords	
  and	
  
tenants	
  can	
  connect	
  directly	
  
around	
  an	
  optimal	
  rent	
  price.	
  	
  
Rent Square and Open Data
	
   “Open	
  data	
  has	
  the	
  potential	
  to	
  power	
  tools	
  that	
  provide	
  
solutions	
  to	
  real	
  problems.	
  Although	
  the	
  UK	
  is	
  the	
  world	
  leader	
  in	
  
releasing	
  open	
  data,	
  its	
  use	
  in	
  informing	
  real	
  world	
  solutions	
  has	
  
been	
  limited	
  and	
  fragmented,	
  with	
  innovative	
  startups	
  lacking	
  
support	
  and	
  data	
  expertise	
  to	
  scale	
  to	
  a	
  sustainable	
  business	
  
level.	
  The	
  challenges	
  will	
  help	
  SMEs	
  and	
  startups	
  to	
  work	
  with	
  
data	
  providers,	
  industry	
  experts	
  and	
  business	
  leaders	
  to	
  develop	
  
new	
  ways	
  to	
  reuse	
  available	
  data	
  in	
  ways	
  which	
  create	
  
sustainable	
  business	
  opportunities.”
PROTOTYPE!!!!
Towards Diffuse Forms of Public Governance: Service Design, Open Data and Disruption in the Private Rented Market - Helena Polati Trippe, Laís de Almeida, Iban Benzal
Towards Diffuse Forms of Public Governance: Service Design, Open Data and Disruption in the Private Rented Market - Helena Polati Trippe, Laís de Almeida, Iban Benzal
“We are very keen to explore avenues for
working together to share and extract PRS
data and improve our stats on the sector.”
Gary Trent, VOA
Validation of Proposition
Tenants would save £1300 per year.
Landlords would save 85% per year in letting fees & costs .
Assumptions modelled & verified with a small sample in Hackney, London. The
modelling showed the calculation worked for 69% of the sample.
These savings mean tenants can afford to pay an electricity bill
or save for a mortgage & landlords are guaranteed a return.
Design Process
Design Process and Open Data
Regulation through a demand & user driven tool
1. Calculation & algorithm: what is a “fair” rent?
2. Stimulating better behaviours
3. Embodiment and tangibility to policy initiatives
4. Designing value & alignments
5. Role of experimentation
6. Disruptive role of technology
7. Data as a public good
Policy Making some definitions
	
   “The	
  consensus	
  in	
  public	
  policy	
  theory	
  and	
  practice	
  is	
  that	
  
policy	
  making:	
  	
  	
  
“[F]ocuses	
  on	
  what	
  Dewey	
  (1927)	
  once	
  expressed	
  as	
  ‘the	
  public	
  
and	
  its	
  problems’	
  .“	
  
	
  (Parsons, 2005)
“[R]efers	
  to	
  actions	
  of	
  public	
  actors	
  (typically	
  governments),	
  
although	
  societal	
  actors	
  might	
  to	
  some	
  extent	
  be	
  involved	
  or	
  
participate	
  in	
  public	
  decision-­making.”
(Knill & Tosun 2012)
Considerations for policy practice in housing and welfare
and wider governance implications
1. Could this mean an intermediate PRS?
2. Questions of adoption & accountability
3. Transparency on collection & use of data
4. New mode of public governance
5. Requires a broader understanding of role of government
6. Open data role from public asset to social / public good
You can reach me
helena.trippe@gmail.com
helena.polati-trippe@network.rca.ac.uk
www.rentsquare.io
Thank you

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Towards Diffuse Forms of Public Governance: Service Design, Open Data and Disruption in the Private Rented Market - Helena Polati Trippe, Laís de Almeida, Iban Benzal

  • 1. Towards diffuse forms of public governance: service design, open data and disruption in the private rented market. Helena Polati Trippe, PhD Fellow Royal College of Art Lais de Almeida, RentSquare Iban Benzal, RentSquare
  • 2. Services in a service design context “[C]omplex,  hybrid  artefact[s].    They  are  made  up  of  things  -­   places  and  systems  of  communication  and  interaction  -­  but  also   of  human  beings  and  their  organisations.  Permeated  with   human  activity  as  they  are,  they  can  never  be  reduced  to  the   simplicity  of  mechanical  entities.    Like  all  complex  entities  they   are  largely  un-­designable.    On  the  other  hand,  for  this  very   reason,  precisely  because  they  appear  to  be  un-­designable,  it  is   both  useful  and  necessary  today  to  develop  a  new,  service-­ oriented  design  culture  and  practice.”   Manzini 2011
  • 3. Services in the public policy design “the  design  of  services  has  a  long  history  and  tradition  in  the   public  realm  …  [and]  services  remain  Eirst  and  foremost   instruments  for  policy-­making.”       Junginger 2013
  • 4. Implications of Open Data in the design process and outcome Through a disruptive platform for the PRS 1. Bring transparency into a deregulated market 2. Addressing market imbalances for social impact 3. Relationship service design & policy implementation/design 4. Role of service design - new mechanisms for policy delivery
  • 5. The PRS prior to the 1988 Act Up until the 1988 Housing Act, the private rented sector was tightly regulated through legislation which imposed restrictions on rent levels and ensured long term security of tenure. These tight restrictions meant the private rented sector offered low return rates and a poor investment option to landlords (Haffner et al. 2009). According to Kemp (2004) the net effect of these restrictions on rents and the security of tenure, meant landlords seized every opportunity to exit the market.
  • 6. The Private Rented Sector since then…. The 1988 Housing Act removed any regulation over rents and, in introducing contractual agreements between landlords and tenants, shifted these responsibilities to these individual transactions. It removed control on rents, which could now be set freely according to market prices and tenants’ ability to pay. The contractual agreements, in the form of assured shorthold tenancies or fixed contracts set out expected quality standards of accommodation and ensured a minimum 6 months in security of tenure to any tenant renting the PRS. These individual contracts became the principal means and mechanism to ensure quality of accommodation in the sector.
  • 7. The size of the PRS From  from  1991  to  2001  the  number  of  households  in  the   sector  rose  by  27%  and  the  number  of  people  in  the  sector   rose  by  44%  (Ball  2004,  10).    A  recent  study  by  Scanlon  et  al   (2014)  suggests  the  situation  in  cities  like  London  is   particularly  acute  with  the  size  of  the  sector  more  than   doubling  since  1991  to  27%  (11).    
  • 8. A glance at the market 40% Single property Landlords Private Landlords Organizations “Currently the sector is dominated by small scale individual investors. According to a 2010 survey carried out by DCLG 89% of landlords are individuals (as opposed to organisations), most of whom have very small portfolios. one. Single property landlords let 40% of all home in the sector.” (Resolution Foundation & CIH, 2013) 3% Private Landlords more than 5 properties 46% Private Landlords 2 to 4 properties
  • 9. Where lies the problem? Lack of regulation & no information Speculative market Pressure on tenants (increase competitiveness) Mismatch between speculative capital market navigate, and get advice Lack of investment into properties and visibility of new regulations Low quality of rental properties Stressful & time-consuming experience Accepts higher price, and compromises at personal costs High entry fees and deposits, not all will be High void rates Impact on returns Incidence of bad debts and hardship High arrears rates Reference check doesn’t consider history Tenants & Landlords disassociated of process in rental Negative impact on quality of life and well being Possible hardship and debt 12
  • 10. A glance at the private rental sector 23% in receipt of full welfare 17% some form of welfare 60% work full-time (EHS 2013) 51% of renters under 35 years 39% cut back on heating and 35% on foodto cover costs 10% of children change schools due to changes in tenancy duration in PRS 20% don’t have central heating 1 in 5 with young children (EHS 2013), (Shelter 2013) (Generation Rent) (Shelter, 2012) (Resolution Foundation, 2013)
  • 11. Negative impact on society Private Rental Sector Health Economic Productivity Family Formation Government Bill Poverty & Social Inequality IMPACT ON SOCIAL MOBILITY AND CHILD POVERTY (Social Mobility and Child Poverty Commission, 2014) COSTS of £10Bi TO WELFARE BUDGET (Department of Work and Pensions, 2014) IMPACT ON RECRUITMENT OF ENTRANTS TO MARKET (CBI, 2013) HEALTH CONCERNS DUE TO POOR QUALITY HOUSING (Resolution Foundation, 2014 )DELAY IN FAMILY FORMATION (Doling and Elsinga, 2013)
  • 12. The PRS from a policy making and design perspective Complex Fragmented Resistant to change From a design perspective a “wicked problem”?
  • 13. Rent  Square  is  a  web  based   platform  where  landlords  and   tenants  can  connect  directly   around  an  optimal  rent  price.    
  • 14. Rent Square and Open Data   “Open  data  has  the  potential  to  power  tools  that  provide   solutions  to  real  problems.  Although  the  UK  is  the  world  leader  in   releasing  open  data,  its  use  in  informing  real  world  solutions  has   been  limited  and  fragmented,  with  innovative  startups  lacking   support  and  data  expertise  to  scale  to  a  sustainable  business   level.  The  challenges  will  help  SMEs  and  startups  to  work  with   data  providers,  industry  experts  and  business  leaders  to  develop   new  ways  to  reuse  available  data  in  ways  which  create   sustainable  business  opportunities.”
  • 18. “We are very keen to explore avenues for working together to share and extract PRS data and improve our stats on the sector.” Gary Trent, VOA Validation of Proposition
  • 19. Tenants would save £1300 per year. Landlords would save 85% per year in letting fees & costs . Assumptions modelled & verified with a small sample in Hackney, London. The modelling showed the calculation worked for 69% of the sample. These savings mean tenants can afford to pay an electricity bill or save for a mortgage & landlords are guaranteed a return.
  • 21. Design Process and Open Data
  • 22. Regulation through a demand & user driven tool 1. Calculation & algorithm: what is a “fair” rent? 2. Stimulating better behaviours 3. Embodiment and tangibility to policy initiatives 4. Designing value & alignments 5. Role of experimentation 6. Disruptive role of technology 7. Data as a public good
  • 23. Policy Making some definitions   “The  consensus  in  public  policy  theory  and  practice  is  that   policy  making:       “[F]ocuses  on  what  Dewey  (1927)  once  expressed  as  ‘the  public   and  its  problems’  .“    (Parsons, 2005) “[R]efers  to  actions  of  public  actors  (typically  governments),   although  societal  actors  might  to  some  extent  be  involved  or   participate  in  public  decision-­making.” (Knill & Tosun 2012)
  • 24. Considerations for policy practice in housing and welfare and wider governance implications 1. Could this mean an intermediate PRS? 2. Questions of adoption & accountability 3. Transparency on collection & use of data 4. New mode of public governance 5. Requires a broader understanding of role of government 6. Open data role from public asset to social / public good
  • 25. You can reach me helena.trippe@gmail.com helena.polati-trippe@network.rca.ac.uk www.rentsquare.io Thank you