Choice based lettings is primarily about how properties are advertised and allocated and this represents a fundamental change from existing practices. However, in order to make these schemes work, local housing authorities also have to review the way they assess the housing needs of applicants on the housing register.

Typically, this has meant a move away from a points system of measuring absolute need to a banding system where all applicants on the register are placed in one of a limited number of bands according to prescribed needs criteria. For example:

Usually there is provision for households with multiple needs to be promoted to a higher band or for households who do not have a local connection, or with a record of antisocial behaviour to be demoted to a lower band.

Depending on the demand and supply of accommodation, when the properties are advertised, it will be stated which band(s) are eligible to bid. If more than one bid is received, the property is allocated to the household who has been longest in that band.

For example where accommodation is in high demand, the bidding could be restricted to Bands A, B & C but, where there is low demand accommodation, all bands would be eligible to bid.

However, a major challenge of such schemes is engaging with hard to reach groups and people who for various reasons are not able to bid for accommodation. Frequently such schemes have automatic bidding arrangements for applicants with a critical need or for whom the local authority has a statutory duty (e.g. homelessness).

As with traditional housing allocation schemes, there is usually provision in CBL schemes to allow for local lettings policies that restrict certain units of accommodation for allocation to prescribed groups.

General criticisms of CBL schemes are that they can be expensive to administer and that the process of allocating accommodation is delayed and void re-let times are increased. Additionally, that they make no actual difference to the overall net supply of affordable housing.

The Government's vision for CBL is ambitious with a one stop shop approach addressing a variety of housing needs with a range of housing options. There will be a high reliance on new technology to make such schemes work through internet advertising and bidding.