The rent the council generates from council housing is certainly not profit and never will be.
The council are obliged to maintain properties, pay for the costs of rent collection, housing allocation, and other support services for residents.
Rents from homes are put into the housing revenue account - which covers mainly the costs for maintaining properties. Anything left is then put towards funding for new homes (by either the council of the HA) - but as we know there are very few of these being built!
One of the largest central government funded projects in recent years has been the Decent Homes Programme. A separate funding arrangement put in place because the HRA didn't cover enough to keep ageing properties up to the required standards. As we all know the older properties get the more they cost to upkeep and modify.
With respect to housing associations - They use Government grant to build houses which is then paid back over time through rent and sales, with receipts thereafter being recycled into supporting new homes and service to residents.
Also - council and housing association tenants have a 'right to buy' which allows them to buy their property at 75% of the market value - a benefit which other tenants will never be able to enjoy. Which would represent a loss for the council if they were allowed to sell the property in the open market.
So really I don't think it's ignorance on just one side with respect to how people view social housing.
Council and social housing affords people the benefits of cheaper rents, not having the responsibility for maintenance and modification of a property and the option to purchase at a reduced price.
The reason the council is able to offer this is through Government money, which would be used elsewhere if this was not the case.
So it's not really as simple as benefit or not, subsidised or not.
It is receiving support from the council - and that support equates to a monetary benefit which not everyone can enjoy due to the allocation procedure.