Hi Whoops,
We've been in your situation - my husband lost his job in the recession and even though we were paying our rent faultlessly our Landlord decided to exercise his right to not resign our tenancy whilst we were on housing benefits. So we were classed as homeless
Every council is different, so i can only say what happens here.
We went to see a Housing Needs officer. She discussed everything with us. We applied for housing and were given zero points as our house was adequate.
We then had to book into a meeting with the housing officer, taking with us our eviction/notice of possession order. They discussed our finances at great detail and spoke to our Landlord to ensure it wasnt "intentionally homeless". They looked into private renting, as they do a scheme here of paying your deposit and first months rent, but we wouldnt be able to sustain the large rents around here, and struggled to find a house accepting DSS.
They put our case forward to the senior housing officer who decided we were unintentionally homeless and gave us priority points. Basically its the highest you can get without being disabled.
Round here you bid on houses - they're published every 2 weeks and those with the highest points get the house/flat they bid on.
We started this whole process on 8th April, and got our priority points on 12th May. We won a house on the 29th May and move in this weekend.
I was petrified of high rise, and a certain couple of areas round here but we were very lucky that a house came up 2 streets away from my SIL.
Each council has a homeless strategy they should display on their website/in their council offices. It will say their targets and enforceable dates - for instance our council have to have made a decision with your homeless application within 33 working days, and cannot put young children in B&Bs unless its exceptional circumstances. They are very picky about accepting as homeless - only about 30% of applicants are accepted - but if this isnt your fault I cant see them denying you (you get a lot of people round here making out their parents have kicked them out)
If you can help it, dont move in with your parents. Your child can share your room until they are 10 - so if you move in with your parents you will be classed as adequately housed. Also, you would only get transfer points, not maximum homeless points.
Under no circumstances leave when your notice comes in in 2 months time - you have to wait for the full court eviction order round here otherwise you are classed as intentionally leaving an adequate home.
Make an appointment with CAB - ours were wonderful here and helped a lot.
Obviously we're really fresh with all this having just gone through it. I really hope your application and new house happen as smoothly as ours did.