With the Credit Crunch and rising repossessions maybe Squatting will return as a viable housing alternative. I lived in a squat in Hackney during the last big housing slump - moving in shortly after leaving the employ of a large mortgage company where I compiled a 'bad debt report' which was like a Kafkaesque ledger of woe.
The law may have changed but squatting is still legal - have a look at these articles
Squatting guide | libcom.org
Shelter England - Squatting
Advisory Service for Squatters - Home