Changes in the structure of industry and employment had affected political processes and increased income inequalities by the end of the 1970s; and changing views about economic management, public expenditure and taxation provided a different environment for housing and other policies. Conservative governments between 1979 and 1997 departed from the broad cross party consensus that had existed over housing and embarked on the process of dismantling council housing by selling council housing and ceasing to invest in it. Council house sales expanded owner occupation but alongside increased council rents and reduced subsidies enabled separate policy ambitions for public expenditure and monetarism to be achieved. Owner occupation grew but reducing the role of the state did not release the market to build more housing. Deregulation of the private rented sector was slow to impact on housing and periodic crises and interest rate increases affected private sector developments. An account of policy and legislative measures is complemented by more detailed discussions of key topics: whether ‘Thatcherite’ housing policies are best represented as neo-liberal; progress and impact of Right to Buy; housing associations’ growth; reform of the planning system. Reference to residualisation also builds on the discussion in the previous chapter.