Affordable homes for young people on lower incomes

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The context

Homelessness in Scotland disproportionately affects younger people. Those aged 16-34 make up over half (56%) of all homeless households, but less than a third of the population. Lower average incomes and lower rates of personal and, in many cases, housing related benefits, compounds the issue for many people, especially those under 25.

A 2018 international evidence review on youth homelessness found correlations between countries with the lowest rates of homelessness in the world, like Finland, and strong investment in affordable housing. Finland’s housing-led approach - investing in affordable supply, floating support and prevention – is widely known to have reduced homelessness from 20,000 households in late 1980s, to less than 5000 today. Its commitment to youth-specific affordable housing is perhaps less well known.

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The intervention

The Finnish Youth Housing Association (NAL), a non-profit agency, founded in 1971 to promote affordable housing for young people, operated largely as an advocacy organisation in its first 20 years. By the 1990s, young Finns were often becoming homeless simply for economic reasons, especially in Helsinki. Despite Finland’s national approach to ending homelessness, which includes a large-scale affordable housing programme, NAL recognised a gap for youth-specific affordable homes. And so an advocacy organisation moved into house-building, through its non-profit construction arm, NAL Asunnot. Today, NAL owns 2,000 flats, mainly in the capital.

NAL also formed agreements with local housing associations to dedicate stock to young people; 23 providers across Finland now commit 2,300 flats for this purpose. Each one is small (mostly studio/one-bed with a small number for young families), centrally located or easily accessed by public transport, in a block with a common room, laundry and sauna. To qualify, applicants must be 18-29, of low income/assets and in housing need. 15% of flats in each block go to young people in need of more support (which can be provided by floating support provider NAL Palvelut), but are non-designated properties, to reduce stigma.

Tenancy agreements are fixed until a tenant turns 35. Local associations offer housing/debt advice, counselling, group/resident activities, courses and training to all tenants (if needed). These services are often also available to other local young people. Advisers prioritise trusting relationships and methods of communication which suit young people, like social media and messaging apps. They can also access the rents database and intervene early with budgeting or other welfare supports.

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The outcome

Since 1990s, NAL has provided affordable homes for many thousands of young people. In Finland, young people tend to leave home earlier than in UK: only 16% of under 29s live with parents. NAL’s existence ensures thousands of young people on lower incomes who can’t stay at home do not become homeless.

NAL’s average tenancy length is three years, as young people’s life situations tend to change often. Though tenancies end when tenants reach 35, most have already made the decision to move on. It’s challenging to ‘prove’ universal prevention, but we know NAL housing is in high demand: the association gets 13,000 applications a year. In 2019-20, around 5,400 people under 25 were registered homeless at any one time in Scotland, compared to 850 in Finland - a nation of a similar population size.

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Key insights

• young people often have different housing needs to older adults/families, in terms of housing size, location, companionship, length of tenure: so a youth-specific affordable housing offer has its place
• integrating young people who need more support into the wider community - without designated, segregated properties - is a key principle: everyone is part of a ‘normal’ housing community
• young people often don’t seek advice or guidance spontaneously; youth-specific housing advisers who are familiar and easy to contact can reach those who may otherwise ‘not engage’ with services

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Find out more…

Tiina Irjala, Development Manager, Finnish Youth Housing Association (NAL)
tiina.irjala@nal.f