Could allocating homes by pure chance really be fair or efficient? Yes, says Frank K枚ster, the Dutch consultant who brought choice-based lettings to the UK. Katie Puckett talked to him about lotteries, why everyone should be on waiting lists and blow-up houses. Portrait by James Bolton

Throw out your housing register, says Frank K枚ster, and hold a lottery to fill your homes instead. It鈥檚 not as strange as it sounds. Allocation-by-lottery is one of the latest incarnations of choice-based lettings, the system K枚ster invented, and it鈥檚 the norm for Rotterdam鈥檚 housing department.

Choice-based lettings took the Netherlands by storm in the 1990s and is one of the most popular Dutch exports to UK housing policy. Since April 2001, the ODPM has set up 27 pilot schemes 鈥 where tenants bid for vacant properties 鈥 and in May it declared the experiment a success.

Back in February, the government hired IT firm Scout Solutions to develop a nationwide choice-based lettings scheme 鈥 provisionally titled HEMS (Housing Employment and Mobility Services). It will merge two existing initiatives and help people find jobs in different parts of the country. A consultation on HEMS has just ended; results will be announced soon.

Choice-based lettings鈥 popularity in the UK and the growing number of Anglo-Dutch joint ventures has meant K枚ster , who is director of consultancy ICS-Advies, is in much in demand. Later this month he will speak at the National Housing Federation鈥檚 annual conference. When Housing Today met him in London last month, he had already visited a number of councils and associations eager to hear his ideas. 鈥淭his morning, someone asked me where I live. I said, 鈥楽omewhere over the North Sea鈥. I鈥檝e become a tour operator,鈥 he jokes.

Those who hear him address the NHF conference will find him a persuasive evangelist for choice-based lettings. But before the local authority in Delft called on him to do something about its burgeoning housing register in 1981, he worked in communications and marketing for the private sector 鈥 and it shows.

鈥淧rofessionals have to learn to think more like consumers,鈥 he says. 鈥淚 always start with the consumer. For consumers there are no borders 鈥 they don鈥檛 talk in terms of housing markets, they talk about properties.鈥 K枚ster believes the way to unlock the stagnant rented housing market is for councils and housing associations to join together in larger choice-based lettings schemes, giving customers as much choice as possible.

Land of the brave

Although he is pleased his consumer-centric ideology has crossed over to UK landlords, he must be frustrated by the caution they display in adopting some of his more radical ideas. The Dutch have been far bolder. The country now has seven large regional schemes, which cover about 1 million properties, and work is under way on a single website to link them all. Generally the only restrictions on tenants鈥 choices are their incomes and the number of people in their household. The winner is the one who has been in their tenancy the longest, though in Rotterdam鈥檚 lottery, this is dispensed with completely.

In contrast, councils and housing associations that have tried out the scheme over here 鈥 including the London boroughs in the Locata scheme 鈥 generally prioritise tenants according to need.

K枚ster does not believe this works. 鈥淧utting people into categories gives an artificial reality. Every day, individual circumstances change. Everybody wants to improve their situation, everybody gets much more ill if it鈥檚 necessary, then society has to solve the problem,鈥 he says.

But don鈥檛 people think lotteries are unfair? 鈥淚t seems unfair but people feel it鈥檚 fair because we do not segment them according to all the individual circumstances. People never trust you if you say 鈥榶our situation is not as bad as other people鈥.鈥

K枚ster does concede that while the lottery has been a hit with Rotterdam鈥檚 young people, the elderly are less impressed. As a result, the housing authority has decided to use the model only for certain homes.

K枚ster also believes the waiting list itself is a misleading concept. 鈥淚 always say: don鈥檛 believe the waiting list, because people have to be on the waiting list or else you don鈥檛 have a chance to move. It鈥檚 us who force them to be on the list, by creating the system,鈥 he explains. Choice-based lettings makes this even more pronounced, K枚ster says, because people can see what鈥檚 on the market.

Instead, landlords should treat the list as a register of customers and use it to learn more about them, in the way a supermarket would about its database of loyalty card holders. 鈥淚 hope everybody will be on the waiting list, because then we know a little bit about who is intending to move,鈥 says K枚ster. 鈥淚f you have a database, you can do much more than waiting until they apply for a property, you can go to the customers and show what you have to offer. I believe the world is much better with less legislation and fewer preconditions, looking much more to the individual consumer.鈥

He says some of the most interesting consumers are 18-to-25-year-olds, and his 2003 report Surfers on the Housing Market, written for the Dutch department of housing, is a fascinating account of the technological and resulting social changes that are reshaping the housing market.

Listen to the youth

鈥淲hen the invitation came to write about young people in the housing market, I said I would do it on my terms,鈥 K枚ster explains.

鈥淚 will not write about how many properties we have to build 鈥 that鈥檚 not interesting. I will only write about what鈥檚 important to young people 鈥 if you look to the mass consumer market, that鈥檚 mobility and being connected. We have to build much more temporary accommodation to facilitate mobility rather than creating places to stay.鈥

K枚ster 鈥檚 report is packed with suggestions of new ways for landlords to interact with young people 鈥 from novel variations on choice-based lettings to the 鈥淲erkHotels鈥 he pioneered. Inspired by East Thames Housing Group鈥檚 foyers, these are places for vulnerable young people to live tied to support and guaranteed employment. 鈥淚t鈥檚 a new opportunity for kids to get out of the mess they鈥檙e living in,鈥 says K枚ster . The first opened in Leiden in the Netherlands 18 months ago and he says it was his proudest moment.

But the idea K枚ster speaks most enthusiastically about is not one of his own, but from like-minded consultant Hendrik-Jan van Griensven: temporary houses in car parks that are just 40cm deep, but can be inflated when needed. 鈥淚f you鈥檙e in the King鈥檚 Cross area, say, you can ring up and book one, they give you the code, you type it in and the [home鈥檚] computer knows everything about you.鈥

Whether these 鈥減ostbox dwellings鈥 ever catch on 鈥 in the Netherlands or UK 鈥 remains to be seen. But K枚ster is determined that there be even more cross-fertilisation of ideas between the two countries, which he regards as very similar in social housing terms, if not in bravery.

He has played an instrumental role in broadening the William Sutton Trust鈥檚 informal group-structure-style alliance to include two Dutch associations, and is inviting UK organisations to suggest best practice regeneration projects for a masterclass in the Netherlands at the end of the year. 鈥淚 want to make a much better world for the consumer in both places. They have so much in common 鈥 we鈥檙e a small country but we can bring you some ideas.鈥

Frank K脰ster
Age50
Family lives with partner of 25 years
Career Senior consultant, Dutch national housing council, 1992; manager of office at housing foundation in The Hague, 1994; director of ICS-Advies, 1998; consultant to Joseph Rowntree Foundation; associate of Chartered Institute of Housing; member of KEI, urban renewal centre; and NIROV, a Dutch institute of housing and planning
Interests opera, sports, travelling, real ale, 鈥渙bserving people in our society鈥