This paper presents a case study of Liverpool focusing on the transformation of the urban landscape associated with housing development. After examining different types of housing development with reference to housing policy initiatives and their underlying processes at various levels, the paper identifies some contrasting features of urban spatial transformation. First, this transformation is characterised by the city-wide spread of socio-economic downgrading caused by private de-investment in the production sphere, in contrast to the pockets of socio-economic upgrading resulting from private investment (on the urban fringe) and reinvestment (on the waterfront) in the consumption sphere. Secondly, the city has witnessed significant residential improvement (especially in the inner city) due to its success in securing public resource allocation, in contrast to economic devastation illustrating its increasing marginalisation in the movement of private investment.
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