Compo, Clegg would be in receipt of housing benefit and that way they would have been on the housing list also remember Clegg was married after the war and the house he was in at the start of the show was his first home.Rents in the fifties were nothing like they are now plus up north they were considerably cheaper.Foggy might well have found that the house he inherited was in a bad state so he sold up and moved into lodgings.I remember a friend of mine took over his council house from his father with no problems so Tom probably did this .People in the fifties did not earn a fortune but life was fairly inexpensive I do not know what things were like in the US at this time.