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My friend is applying for leave to remain in the UK and her solicitor is optimistic.

she lives in a house with a number of other people with various visa status but all of them are legal.

a previous "house mate" (call her X), obtained a visa as a student and then didn't attend. It turns out that UKBA are aware of this and it is likely that X will be raided shortly.

What has transpired recently is that X actually gave a false address. X gave the address of where my friend lives and not her current address. So my worry is that my friend will be raided and her visa application put in jeopardy.

It also transpires (you couldn't make it up) that X has been working as a "carer" for an elderly "gentleman" which in my mind equates to prostitution.

My question is will my friends visa be put in jeopardy because of this loose affiliation? Her solicitor has suggested she should consider moving.

As her solicitor has all the facts she should follow his advice.

I would normally agree with you, however because my friends solicitor also represented person X and I believe secured the sponsorship. he is understandably aggrieved that person X is behaving this way as it could reflect very badly on him and the sponsoring organisation.

It seems odd that the best course of action is to move. What if a complete stranger gave a false address and by coincidence the people in that house were also applying for visas. It would be completely unreasonable and unfair to hold that against genuine people who happen to live at the address the person gave.to

If your friend is here legally then it shouldn't be a problem.

It doesn't matter who lived at the stated address illegally etc. Your friend is a different person. Not sure why she is using the same solicitor and also what is the reasoning behind to relocate?
You will still need to declare all previous addresses you lived in the UK on the form.