Development professionals and researchers in developing Asia are quite familiar with informal settlements, particularly in the region’s many burgeoning “megacities,” and the substandard housing typical in those communities. Unlike other development problems, such as primary education or sanitation, economic growth does not make housing problems easier to solve.

The long experience and diverse experiments of the United Kingdom (UK) in providing affordable housing offer some insights into developing Asia. Policies present various positive and negative examples, particularly in the successful role that housing associations can play. In recent decades, such associations have been the main providers of affordable housing—moving away from local government provisions operating as private bodies that aim to deliver public goods. This shift was initially criticized as a form of privatization, yet, decades later, it has effectively provided affordable housing without placing a financial burden on local governments. This policy brief, after a quick diagnosis of the housing problem in developing Asia, discusses the UK experience in housing policy, with emphasis on the lessons that can guide Asian policymakers. It then focuses on the role of housing associations in recent decades, followed by the financing mechanisms offered by the UK government.