This paper discusses indicators to housing and the living environment, Domain 10 of the Bristol Social Exclusion Matrix (BSEM), for use in the Poverty and Social Exclusion survey. Indicators that capture the relationship between poverty and housing must give a good picture of the following main areas: the physical quality of housing; the degree of (over)crowdedness; the suitability for the specific needs of the household; the security of tenure and the affordability of housing. The effect of housing on other measures of poverty and social exclusion extend to the quality of the neighbourhood and the wider area in which housing is located, referred to as the living environment, which will be measured through various indicators of neighbourhood quality.