Sweat equity: a housing alternative

Abstract

In response to increasing diversity in household types and failures of state rental housing to meet this and other needs, the government in 1984, operating within a newly deregulated economy, increased its commitment to housing provision by increasing expenditure and broadening alternatives. The Sweat Equity programme, introduced the following year, defrayed the normal professional labour costs by using the labour of those recipients of the programme who renovated old homes for their subsequent purchase. This study traces the history of state housing provision in New Zealand and investigates the government's plans for Sweat Equity and their implementation through a national survey and regionl case studies. Data were gathered through examination of archival records, interviews with Housing Corporation officers and programme recipients and observation of the properties for which a photographic record was made. It was found that, though widely distributed geographically, the programme operated only on a small scale and government never formulated formal policy. Nevertheless, for the recipients the programme was highly successful in enabling them to own a home and one that met their needs. However, for government the high capital costs were a particular disincentive to maintain the programme and with the impending privatisation of the Housing Corporation it was discontinued in 1991. These findings are discussed in the light of experiences of similar programmes in the United Kingdom and Australia.