Mick, here's a book for your blood pressure:
http://www.amazon.co.uk/exec/obidos/ASIN/0006382495/prettygoodbri-21">Danziger's Britain: A Journey to the Edge</A>/026-6983978-5112401
Basically, the guy was a photographer who went around the rough parts of the world taking arty photos.
He then decides to go on a tour of the dodgiest bits of the UK for comparison, staying with the locals en route. And guess what? Yep, Afghaninstan = Benwell [or county Durham in Mart's case]
Mart, I can remember similair headaches. You did the right thing.
I used to know landlords in the Newcastle area, but years ago. I'll give it some thought. Most nowadays are bedsits for students.
Jobs? Keep plugging away mate. I've spent 2 years trying to get back to a sensible job since moving to Leics, and I've just got a promising one last week. I've had the last 5 months working in a warehouse and I wouldn't recommend it...
What about Local gov jobs?
http://www.jobsgopublic.com/
Its a nice gravy train, modest starting wages, but loads of holidays, guaranteed pension etc. They should be hypersensitive about rejecting applicants with 'issues' if you don't mind me putting it like that...I think you need to pull every trick you can, because jobhunting is pure luck.