Venk, I don't think you have thought this through. If you came to me after loosing your home through no fault of your own and I offered to place you and your family in a caravan, in a field away from (one would assume) transport, schools your place of work. Then I told you you had to remain there until you were successful bidding on the housing register and this would be years. How would you react?
As for taking over empty homes, no Conservative run council wants anything to do with owning anything, the private sector cures all ills. Plus, to be honest, they don't have the money they need up front to do this.