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In this CBC article from before the Brexit, they discuss what view Queen Elizabeth II might have of Brexit, stating,

But that hasn't stopped some from speculating how the Queen would vote. "As an elderly woman who didn't study at university and lived in a council house, she is in a demographic more likely in which to leave … I doubt we'll ever really know for sure," [pollster Joe] Twyman said. (emphasis added)

Wikipedia describes a "coucil house" as

A council house is a form of public or social housing built by local municipalities in the United Kingdom and Ireland

My understanding is that the royal family lives in Buckingham Palace, is saying she lived in a council house a reference to that, just being underplayed? Wikipedia has very little on her early life, so maybe I just don't know enough about the Queen.

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    "Dry humour" is probably a good definition. – user66974 Jun 29 '16 at 17:47
  • I know, the article says "how the Queen would vote" – Azor Ahai Jun 29 '16 at 18:33
  • In American English, "council house" would be "public housing project" See public housing projects. More common now to say just "public housing". See public housing in the United States – ab2 Jun 29 '16 at 21:49
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This is, indeed, a piece of dry humour alluding to the fact that Buckingham Palace is owned by the state and not its current occupier - much like a council house (given a little poetic licence).

The delivery of this joke is one of understatement and irony, hallmarks of dry humour

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