Not saying you're wrong but in that case how my mate got hers is an absolute mystery as she had £££s saved up for a house deposit before she moved to London, now she's moved it's not enough for London prices so she needs to add to it but it's still obviously thousands.
I honestly think anyone can apply for housing association, you'll just get more points when bidding if your house has been reposessed and the situation is as you described, but from what I've heard it's not an automatic no for anyone even if you were technically a millionaire.
ETA On this it says the council will house you if the mortgage simply became too expensive
who knows, for me, it's just the only thing that makes sense as to why she hasn't mentioned exchanging contracts, speaking to estate agents, speaking to solicitors (when they bought the shack she talked about this kind of stuff regularly in vlogs) but renovating, either that or what someone further up the thread said it's either HA or beavers mums rental and they're doing it up in exchange for a low/free rent