Retired social housing worker here. Its been mentioned that lettings changed in the late 70s to mainly needs based. Before that, it was slum clearance, waiting time, or special circumstances like certain types of work. However, lettings could be very selective, councillors would interfere, and some estates were almost middle class in the mix of tenancies. Housing officers would visit applicants' homes (I've read some of the old files) and comment on standards of cleanliness; whether the father was in steady employment; how the children were clothed etc.
I worked on a beautiful estate, mainly semis, with a few detached house. They were nearly all owned privately by the 90s, what a bargain! The neediest applicants now have little choice. I'm pleased Scotland and Wales have withdrawn the Right to Buy. I can't see the point of building new social housing if its going to be flogged off at a discount so I hope England follows suit.
I would like to see more social housing, partly to improve the mix. Because of the focus on 'need' there are now highly concentrated areas of deprivation, crime, unemployment. Only the most desperate for housing will accept tenancies there, and the turnover can be high. Here in the north the high number of empties led to large scale demolition 20+ years ago. Some northern councils advertised family homes to families from London, and some did take up tenancies.
I understand why people who are struggling to pay private rents, or mortgages on small, poor quality housing can feel resentment towards those with secure, affordable tenancies and an option to buy. But there will always be winners and losers. Unfortunately the winners these days in the council housing stakes are often like Mousemay's neighbours. 😐