As far as I'm aware... The national government says that X% of all housing must be Council owned. Local government then allocate the housing for a reduced rate rent (well....cheaper than private landlords) There is an option to buy the Council houses off the Government if you have been living there for long enough. The local council are pulling down my current block of flats because (a) - It would be too expensive (£10million) to bring them up to minimum living standards, and (b) - having so many low income families in one place is a security nightmare. The site (which is in a _really_ nice place) will be redeveloped, it hasn't been decided as to how, but my bet would be a mix of council and private homes. That's the way I see it anyway - I may be wrong.