Over three million tenancies were let by local authorities and housing associations in England in the decade to 2006-07. However, the annual volume of lettings slumped by 40% over this period. This sector study dissects the factors contributing to this trend, and investigates the extent to which the outcomes of lettings processes are compounding the residualisation of social housing and the ethnic segregation of neighbourhoods. In analysing the geographical distance typically moved by those taking up tenancies, it also explores the extent to which choice-based lettings impacts on the geographical pattern of house moves. The research was undertaken by Hal Pawson and David Watkins of Heriot-Watt University, Edinburgh, and commissioned by the Housing Corporation’s Centre for Research and Market Intelligence (CRMI).