Answer:
it could not be used because it can attracts the magnets in which compass it self is a form of magnet which can utilize the magnetic properties of the earth to give a reading and Compass housings are often made of either brass, aluminium or plastic.
Step-by-step explanation:
The characteristic of iron that would make it a bad material for the housing around a compass is that it could not be used because it can attracts the magnets in which compass it self is a form of magnet which can utilize the magnetic properties of the earth to give a reading reason been that Compass housings are often made of either brass, aluminium or plastic
Secondly it would confuse the magnet thereby making it un-useful or useless because the iron can easily become magnetized itself and Iron is a magnetic metal which can cause the needle of a compass to give a false reading thereby messing up the magnet's direction and making it useless.