This article is published in the journal for Public Administration and Local Government – Agenda, No 04/2011, issued by the Palgo Center from Belgrade.
 

Upon the completion of mass privatization of public housing, solutions of housing needs in Serbia are completely left to the market, while as the preferred form of housing in new socio-economic system is considered exclusively housing in own apartments. At the same time, housing market is limited, loan conditions inaccessible so apartment purchase is unavailable to most of the housing vulnerable population.

For these reasons, a large number of those households who would like to own an apartment is not able to so they are compelled to rent out the apartment in the market, which is almost entirely in the shadow economy, formally and practically unregulated. Rental housing in private sector has been neglected even during socialism, when it was taking place also informally. The consequence of this situation is that neither lessees nor lessors have no legal security and practically are without any support or protection of the state, whilst the state does not collect taxes. Although the statistic is not clear enough, it is estimated that in the Serbian cities 10% to 25% of households live under a lease.
 

Therefore, it is necessary to formulate a public interest in the field of housing and to have housing policy back in the area of public intervention. In line with the development of regulations on the rental housing market, it would be necessary to build adequate institutional capacity in public and private sectors, to provide incentives and sanctions, to introduce measures of supervision and to support tenants’ associations. Without such a comprehensive approach, this sector will not develop and significant part of population will remain in fully subordinated position related to the flat owners.