Not for banding, that's unlikely. For points allocation, possibly yes, depending on the issue. It's true that lots on the bidding list will have extra points allocation. It's still better to be eg Band A with 30 points, even if so are most people, than to be Band A with 10 points. So inform the council of any health issues.
The LL giving you longer to stay gives you more time to secure a new private rental or to maybe get lucky with the bidding list. It doesn't mean you're going to get housed any quicker by the council through the homeless scheme, it just means they have no need to put you into temporary accommodation so soon.
So just thinking it's actually not in my favour to wait as council has advised until bailiffs turn up as I could end up somewhere I don't want to be.
It's personal choice and present availability to private rent and long term aims. What is your main priority, to not go through homelessness or to obtain a council property? The former, get looking for private rental now. The latter, stay put until eviction.
When council told me this I thought that was great - I'd defo get a house - hard luck on landlord having to take me to court but best option for me but now had time to think I'm panicking
You'll be housed, it won't necessarily be a house. For temporary accommodation could be only one room with no cooking facilities and no washing machine use. For permanent it'll be either a house or a flat.
If accept it (property council offers) then if it's awful I'll unlikely get a swap and means I'll be back to bidding on properties?
If you're talking about temporary accommodation then it's pot luck if you get moved to a better temporary one. And if you don't accept what you're offered the first time they'll have no further homeless duty towards you.
If it's permanent you're talking about, you may still get a swap even if awful. Eg if you have a 3bed but could manage in a 2bed and someone has 5 DC and is desperate for a 3bed they may swap you for a 2bed. If you have a 2bed house with garden, someone may swap you for a 2bed flat with no garden. You might consider those swaps to be worth it if it gets you out of a mouldy property or away from neighbours you're having problems with.
If you refuse temporary accommodation and end up with them discharging their homeless duty towards you, they may let you stay on the bidding list but with no priority status (the same as if you were adequately housed) or they may kick you off the list altogether.
If you're adequately housed in permanent housing, the council may not even accept you back onto the bidding list if you decide it's awful and want to move again. It will depend on the area and their rules.
Be aware that some of the people with lowest priority who have been allowed onto the bidding list will realistically never be housed.
just trying to work out how to get best chance of getting a council property now before court and bailiffs
This is highly unlikely to happen, realistically you're looking at taking a private rental or going down councils homeless route.
Are you able to move into another private rent? If so, you should do that. You'll be able to stay on the housing list, it won't affect your priority
Of course it'll affect her priority status. If she has a private rental with eg a 6 month tenancy, then she's no longer homeless. She'll still be on the bidding list, but without priority status as she'd be adequately housed. She'll have to reapply for homeless status if her new LL evicts her.