HMO appeal - kitchen too close/ permision for internal wall

HMO Licensing

I own a leasehold property in tower hamlets which requires an additional HMO licence as I have 4 sharers residing there. Its a groiund floor and first floor maisonette. I applied for a HMO licence and the licence was granted but I was not permitted to use the downstairs bedroom which is accessed via the living room as “it is too close to kitchen”. I took this to mean it was a fire hazard, I decided to appeal to the first teir tribunal and so pointed out that both the bedroom and living room have doors which lead to a large back garden which is on the ground floor. I have sent the forms to the tribunal and await confirmation from them.

Today I received an email from the council saying :-
I would like to inform you that Tower Hamlets Homes (THH) informed us that you are not allowed to use the living as bedroom, unless they have given you permission in writing to this effect. As a result even though you have done an appeal through the Tribunal, you have to resolve this issue. As it appears that the bedroom in question is part of the living room space, which has been divided into two rooms.

The wall in question is an internal partition wall and not structural and therefore I cannot see in my lease this being a problem. I do however believe I read somewhere that issues relating to whether the internal alterations and permissions should have no bearing on a HMO licence.

I would be grateful if anyone could assist or point me in the right direction. It feels like its one excuse after another!