My daughter has bought and lived/lives in ex council property. First a flat in South London and now a house in Herts. In each case most of the other flats were council tenanted, as are many of the houses on her estate and the vast majority of tenants are pleasant law-abiding folk like you and me, who keep their gardens in good order and cause no problems to their neighbours.
There are problem families and these fall into two groups, those who have problems like addiction, incapable of self management, complete lack of parenting skills and other such problems, who may need to be re-housed but mainly need a lot of social input, training and support then there are those who are criminal, see no need to respect their neighbours or have children they see no need to discipline. These may well benefit from, quite literally being sent to the sin bins. It might give them an understanding of what the people whose lives they damaged felt like.
I can see a lot in re-introducing the victorian belief in the deserving and undeserving poor, but the problem is how much effort is put into indentifying those whose problems lie in being unable to cope as distinct from those who wont pull their wait and any tests devised by the state would be more interested in cutting the cost of tests than truly trying to identify those who need help.