This paper investigates the social distribution of mortgage arrears in
England using the 1993-94 Survey of English Housing. It models the od
ds of households being in mortgage arrears in relation to a range of s
ocio-economic variables. If concludes that the relatively high rate of
mortgage indebtedness of recent years is likely to continue for as lo
ng as there is such a fundamental disjuncture between current labour m
arket, housing market and social security policy. Many of the features
most closely associated with the flexibilisation of the labour market
are the very factors which lend to mortgage indebtedness. At the same
time levels of social security support for mortgagors experiencing th
e periodic downside of the flexible economy are inadequate and likely
to become even more so. Until such a time as a radical reconnection of
these three policy spheres occurs the threat of further 'epidemics' o
f mortgage indebtedness is likely.