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Update on our situation!
We have finally got our local council to admit duty of care but as they do not have housing stock we have to find a private landlord willing to accept DSS tenants. We have been awarded a month in advance as well as a deposit guarantee, we have also found a landlord and should (fingers crossed) be moving in within 2 weeks.
So, all those who are having probs with getting housing sorted please keep hounding the council. It worked for us, it will work for you.