With those houses you refer to, Woolleysheep, Government money has
already been spent!
You don't really think that a private individual (or, say, a housing association) would sell a house for just £1, do you? Those house were bought (at market value) from their previous owners by the local council, using money provided under the Government's Housing Market Renewal scheme, specifically so that they could be brought back into use by offering them to new residents for just £1 each.
http://www.dailymail.co.uk/news/article-2184334/Empty-houses-sale-1-Britains-cheapest-street.html
So, in those cases, what you're proposing (i.e. using Government money to get unoccupied homes brought back into use) has already happened!
Chris