You can, but it may not be a good idea. All council’s operate differently. Some are quite happy to let would-be tenants refuse an offer without penalising them in any way, while other councils don’t take kindly to refusals. The best thing to do is check your council’s policy on offering housing to applicants. Most council’s will explain whether they will deduct priority points if you refuse or if they are happy for you to refuse until you are offered one you like. If you are unsure, call the housing department and ask.
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