Our 6 year old daughter shares a bedroom with me and my husband, we have been on the housing list for 6 years, but the council don't seem to care about the sitiuation, could you please tell me if there are any laws, we are currently living with my mother-in-law

You must be from the UK because you mention council. I don't know about the rules in UK, but to my way of thinking, there wouldn't be a problem with the law in a child sharing a room with her parents. However, there would be if siblings shared a room into their teen years. I guess you have to keep at the council to remind them, or move somewhere else to get accommodation you are happier with.

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