Grotty kennel housing dog (4)
I believe the answer is:
tyke
'dog' is the definition.
(thesaurus)
'grotty kennel housing' is the wordplay.
'housing' indicates the answer is hidden within the clue (part of the clue houses the answer).
'TYKE' is hidden within 'grotty kennel'.
(Other definitions for tyke that I've seen before include "Cheeky child or small dog" , "Naughty kid" , "Cheeky kid" , "Small child or unpleasant person" , "23 [BRAT]" .)