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This paper explores the links between theory and social policy by focussing on the relationship of models of ‘filtering’ in the housing market to housing policy. Filtering theory suggests that policy objectives may be achieved indirectly by building for higher income groups allowing those lower down the scale to ‘filter-up’ into the housing vacated. However, a review of different versions of filtering theory drawing on studies from the USA and UK concludes that the theory is theoretically and empirically inadequate as a basis for effective policy. It serves, instead, to legitimate the persistence of inequalities in housing provision and to justify directing resources away from those in greatest need. An alternative conceptualization of the housing system based on a political-economic approach is suggested.
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