The polarised positions of the 1979-97 Conservative Government and pressure
groups over the Housing (Homeless Persons) Act 1977 impeded vigorous analy
sis of its merits. To assess the value of the homelessness legislation, thi
s paper broadens the debate to review the moral basis underlying all counci
l house allocations. A utility maximising framework is adopted to clarify t
he principle of allocation according to need, and it is argued that this is
best described as a (revised) principle of allocation by long-term depriva
tion. The Conservative Government's case for amending the homelessness legi
slation is tested against this revised principle and it was found that it w
as not supported by the available evidence. This utilitarian framework prov
es capable of explaining the rival principle of allocation by desert, and a
lso reveals the relevance of the collective impacts of allocations policies
. The analysis suggests that neither a return to the 1977 Act nor the syste
m established under the 1996 amendments are satisfactory. Instead, argument
s are put forward for a new legal framework for allocations to be establish
ed. This would oblige local authorities to assess all households on the bas
is of long-term housing deprivation. However, it is also suggested that thi
s system should seek to reduce over-concentrations of homeless households o
n undesirable estates.