You need to be realistic.
You have a home, it may not be ideal, but many people are in a less than ideal housing, it certainly is better than many.
You are a single lady with no dependents.
Both of those put you way down on the list. I've had a quick squint on that Manchester site. There are a few properties you can bid one. One has no bids, the question is if that is because it's only just gone on or if there are other issues, as I don't think there was another 1 bed property that age wise you could bid on which had less than 40 people bidding on.
And it's not a waiting list that you eventually get to the top of. It's done on need, so you could come 2nd every time and it makes no difference.
If I put it this way a friend who fled under witness protection with 3 small dc, 1 of whom was disabled, living in B&B still took over6 months to get a place despite scoring high enough to be 2nd for some time.
I think it's partially your illness talking. "If I can get a house, I can focus on doing it up and it'll be lovely and it will help me get over it and then I can get a job." I have a teen dd like this. It's always one more step and then she feel better and will be able to do what she needs to do, as she'll feel better.
But the dream picture isn't the reality.
The stress of finding you haven't got the house you set your heart on again.... and again.
Then the one you get is in a bit of a rough area.
The neighbours seem unfriendly.
It isn't close to public transport-or even a decent shop.
You need to furnish it and you haven't got the money for essentials, let alone paint (and no that's not cheap even assuming you've got brushes/rollers etc to do it with).
So you're now in a bit of a grotty flat, away from your dm's support and you know you should apply for jobs, but you really can't face it until you've done the house up a bit. But you haven't the money to do it up until you have a job, but you can't face that until you've done the house...
Have a look at the council and go and have a chat to them. Ask them to be realistic about what you might be able to get.
Then consider your options with the knowledge of that.