OP - I had a phonecall today offering me a house. I don't get a choice in this. I take it or I don't get housed AND I lose the house I'm in.
I have been luckier than you in that I have been offered a small 4-bed new build house, not a flat.
However. YOU have been luckier than me in that you have permanant security of tenure - MY council has already changed over to the 'new' tenancies - where they are regularly reviewed. So I will have to move into a smaller house again if my DD leaves home. I say IF, because she has SN, and it really ISN'T a given that she will ever be able to live totally independantly, but at some point, DS1 will leave, and then I will no longer have a NEED for a house so large, so will have to move again.
AND, you have been luckier than me in that your rent will be just £380pcm. Mine will be £780pcm.
So, each of us have been lucky in some ways, and not-so lucky in others. The difference is, that although I know this house will not be a 'forever house', and I WILL struggle to cover the rent (And I mean REALLY struggle) when I go back to work in 2 years time, I am grateful for the opportunity that this house will give me. Even though it will put ANOTHER £15 a WEEK onto my travel costs to get my dc to school. Which will mean that out of my Income Support of £67.50 a week, I will be spending £65 a week of it on travelling - leaving me VERY hard up - it is a HOME with enough room for my dc.
Take the shitty bits of life and make them smell of roses, OP. Take the flat, put up with it for a while, then try to get an exchange. You'd be surprised at the people who WILL want to be in that area, because it's where they grew up, or where their family is, or because it's closer to their work. There will be SOMEONE who wants to exchange with you. Look on this crappy flat as a stepping stone to something better, and enjoy the fact that the low rent will give you a chance to save up to get something better.
I hope you are feeling a little better about your situation today, OP. It really IS just the luck of the draw. And SOMEONE ends up getting the bad luck. Today was the first piece of good luck I have had in nearly a decade. Your good luck will come along when you least expect it!
(As you can tell from my post yesterday where I said I had about 15 months left to go before I got housed! The ODDEST things can happen, just when you least expect it.)