Well a flat can be considered a home, and probably cheaper to build a 2 bed flat than a three bed house.
The Government stopped building social housing - it was Tory policy. Cut the funding and what did you expect.
Tory Policy? It's fallen steadily with every Govt or coalition. Here's a statistic to wind you up, Margaret Thatcher built more council houses in one year than New labour did in their whole period in power.