Recent UK government objectives are focused on creating sustainable communities to improve quality of life. Housing is a key issue to consider in delivering healthy and attractive communities. In certain areas of housing, lack of supply and consequent problems of affordability have created persistent social and economic pressure. For sustainable communities, housing should be easily available, high-quality, economic, ecological, aesthetically designed and comfortable, thus better suiting the needs of a person. Moreover, the housing must be affordable according to the local and national situation. This article addresses the issue of sustainable communities from the perspectives of housing markets and socio-economics. The study focuses on key factors that are believed to contribute to the currently existing housing situation, assessing the impact of regulated socio-economics upon the sustainable housing and communities. The study also reviews past and current government initiatives and policies relevant to housing and regeneration in the UK. The article finishes with the interview-based study carried out in the Northwest with a reflection on the notion of the sustainable communities plan and its eight key components, the housing market and its dependence on the economic, the social and political environment and it offers recommendations for the further sustainable communities’ development within the UK.