There would generally be two types of common guests. Workmen in the area to build something, tradespeople, or those the council was housing.
Typically it would be a mum and a couple of kids, up in the morning by 8am in their school uniform. These places don't serve food, and you'd see people leave with a couple of bags or boxes, as they get shunted elsewhere.
I'm glad they were not out on the street, but it broke my heart every time I saw it. I could well understand a parent thinking that a stable location would be better than shifting from one B&B to another. The lack of social housing is a genuine disgrace, and these resi conversions are absolutely not the answer.
How can people these people move? Especially if they own these places.
As in: You would are poor and qualify for housing assistance. Here is your housing.
What most people might be envisioning is more of a stipend system, where you can live wherever you want, and the government just gives you money towards rent.
I believe this is more of a prescribed housing situation.