In market economies the housing market operates to sift and sort households into different sections of the market by occupation and income. Changes in the distribution of households across the housing market can therefore occur as a result of changes in the structure of occupation and income or changes in the supply of housing by tenure and price. Britain has witnessed major changes in both occupational composition and the tenure structure of the housing market over the last 20 years and this research examines the interrelations between these changes in London from 1971 to 1981 using data from the OPCS Longitudinal Study.