I have practical experience of this situation in a University Town.
Even if the landlord also lives in one of the “bedsits” and personally knows the neighbours, it can be almost impossible to avoid conflict through the party walls, especially in what looks like curtain wall terraced housing.
It might be more acceptable if the extra residents were in a “Slough Shed” at the bottom of the garden!

Unfortunately comments on this application don’t seem to be allowed. My concern is trivial but I would have liked to have had it noted nonetheless.

I used to go to Torquay until the hotels were turned into HMO's. This lovely town, has been turned into a place where you don't go out at night! Now residents boycott Grays, as it isn't very nice anymore and that's just in the daytime. I now have my food shopping delivered, I don't think you can revive Thurrock, not with the way some people can do what they like in our borough!😡