Eglantine; 'If you are made homeless the council have a duty to find you accommodation "appropriate to your needs".' This is partly true, and in the case of Lin1959 definitely so because of her husband's disability. In general however homeless people have to be 'in priority need' according to strict criteria before the council have a duty to house them. This is why there are so many visibly homeless people on the streets. (See below*.)
Lin I would very strongly advise you to go along to your next MP's surgery (times and location will be on their website) and tell them your story. This will most likely be the quickest and simplest way to get the help you need. They may be able to talk to the council about the mix-up and get you reinstated on the waiting list, but if the council has no available (and suitable) properties you may well end up being offered private accommodation again.
*Councils carry out a 'part VII assessment' and to meet the criteria for re-housing applicants must pass five all tests.
They must be:
• Eligible for assistance
• Legally homeless (there are several definitions of homelessness)
• In priority need, for example with dependent children, with physical or mental health problems or expecting a child
• Not made homeless intentionally, through a failure to pay rent or mortgage (as well as other factors)
• Possess a local connection with the council, usually a former resident themselves or with close family who are residents
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