We were also in a top floor one bedroomed flat until Caitlin was 3, it was ridiculous, people kept leapfrogging us in the council list. In the end we only got our 2 bed house because we went in nearly every day for about 2 weeks to complain about the lack of space, we complained about everything we could think about: antisocial neighbours, broken glass left outside from the teenage neighbours, pulling pram up the stairs causing injuries, etc. If we hadn't done that we'd have been waiting a lot longer!
I also enquired about the legal age for a child sharing a bedroom with their parents and was told that at 3 daddy would still be bathing the child, changing nappies etc, and that isn't illegal or anything. Th only legal requirement is where brothers and sisters share a room, they should have their own rooms when the older child is 11 or 12, I was told.
I know what a nightmare it is to wait and I know everyone says it, but bug the council daily!!! It does work xxxx