My 88 year old Aunt lives in a 1 bed property in Rolls Rd., My cousin who is in her 60s has been living with her for almost 4 years looking after her, she has letters from D.W.P. concerning her pension as proof. My Aunt was admitted to hospital just before Christmas to have her knee replaced and has been staying at another daughters out of London as they have toilet etc. bedroom on the ground floor until she has healed about another week or so.
My cousin was visited by a rep. of the housing assoc.who if I have got my facts right because she was in such a state told her that she is there illegally and my old Aunt would have to go in a home and my cousin leave the property! I tried to calm her down and told her to get advice pretty quickly...so the point of me doing my normal waffle is...whats the next thing to do next!
blackfriars advice centre at cambridge house is the first thing i can think of. there's also southwark tenancy support people who are definitely worth talking to as they're very likely to know either what to do or who to contact http://www.shp.org.uk/SouthwarkTS
I think she should ring Housing Options at Bournemouth Road to get some advice and be put in touch with various services like social services and maybe apply for sheltered housing with the Council if she finds she can't succeed to the tenancy.