Having prevailed, government restrained housing (7)
I believe the answer is:
reigned
'having prevailed government restrained housing' is the definition.
I can't judge whether this definition defines the answer.
'prevailed government restrained housing' is the wordplay.
'prevailed government' becomes 'g' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'restrained' becomes 'reined' (reining is a kind of restraining).
'housing' means one lot of letters goes inside another.
'g' inserted within 'reined' is 'REIGNED'.
Can you help me to learn more?
(Other definitions for reigned that I've seen before include "Maintained high position" , "Ruled" , "Was king" , "Held sway" , "Had sovereign power" .)