My wife was not aware that you can only share accomodation with family members and no friends or house mates are allowed... Even a immigration solicitor didn't inform us about it as my wife got all paperwork checked from them before submitting.
I think you have misunderstood my point on this view.
Most form of proof of accomadation supplied by applicants and their sponsor is normally prospective rather than avaialable (unless the sponsor owns his/her property).
However the ECO has to determine (only those whp live with friends and family) what the reasonable prospect of these people getting accomadadtion that will be exclusive to the couple without recourse to public funds.
The prospective of couples getting exclusive accomadadtion is much better with families rather than with friends who are not related. Your own parents/inlaws are more likely to help you morally and financially rather than friends.
This is why it is accepted that most applicant who say they will be living with their family untill such time they can afford, rather than friends, their application for visa suceeds whereas those who say they live with friends it is refused for the reasons I have given above.
Now as far as your application is concerned, I can only think that it is refused for this reason only (becos your wife stated at time of application that she was sharing with her friend), because I think you prospect of getting your own accomadadtion are good in that your wife is working, earning a good wage, she has sufficient funds available to do this without recourse to public funds.
I would conclude that your above quote is not exactly right and it is not what I implied. You can show friends accomadation as per the immigration rules. I am saying that it will most likely be refused than granted for the reasons I have explained.
Hope this helps and clears the matter.
As far as your own matter is concerned I think you need to make teh BHC that your wife now has exclusive accomadation( not now sharing) and that it meets the requirement on which you were refused. This will be done by completing AIT2 form and sending it back to BHC and hope the ECM is now satisfied and grants you visa.
I am sorry if you misunderstood what I said,but hopefully you are now clear about matter.