Sounds sensible, Lasercow, unfortunately the Council are required to obey the law. In regard to Housing there have been Housing Acts in 2003,2006,2009, 2012 and yet another one is in the pipeline. In fact the amount of legislation has been so horrendous that some Councils are still trying to implement parts of the 2003 Act. In my lighter amounts I offer that a radical change of policy would compel the Scottish Government to stop legislating on Housing for at least another 20 years so we can digest the current dollops of legislation.
However, in relation to your point, thanks to the 2012 Act homelessness has absolute priority for a Council house. Now there is an argument that there should be a distinction between intentionally and unintentionally homeless. I happen to agree with that distinction - I am in the minority.
The argument hinges on whether people have the intellectual capacity to understand tenancy agreements. If they don't then, by definition, there is no intent which requires a certain intellectual capacity. What is perhaps interesting about this position is that it actually supports Boris Johnson's recent speech. Although the policy's supporters would probably argue vehemently that this is not the case. I'll leave you to be the judge.