I agree with all those who see the right to strike as important.
lillaura123, I don't agree with you on the strike. However, regarding housing, I don't know what the housing officers are thinking of in cancelling your application in such circumstances. I have some advice for you, based on an understanding of how these things can work in my 10 years experience of working as a secretary in 6 different areas within 2 local authorities. And as a political activist who has had the dubious pleasure of encountering various elected representatives - MPs and councillors - over some years
I would suggest:
Phone the relevant section and make it clear you will be complaining, formally. Try to speak to the manager if you can. But stay polite to anyone you speak to, particularly as often you will be talking on the phone to someone who is not the one making decisions.
Make a formal complaint and ask them to reinstate you with at least equal priority to where you were at the list, or a commitment to offer you the next suitable property under the circumstances. You should be able to do this via the Council's website - as clearly you have internet access - if you're unable to go in and visit the relevant office in person.
Go to a local councillor's surgery.
Contact your MP - most have an email contact address that you should be able to find out online, or there will be a local party office or something that you can phone.
Councillors and MPs can contact the local council officers, eg the housing department, about your case and try and intervene on your behalf. Although I don't always think it's fair, we do feel under more pressure to jump when a councillor raises an issue.
But don't blame the posties because you have a bad experience elsewhere.