Yes, that is typical of clauses that employers use as a 'cover all'.
I guess you've been working for this organisation for at least 12 months? (and have thus gained some valuable employment protection rights in terms of unfair dismissal). That's the first thing. If not you are on sticky ground.
After that, if you (and others) have been working away in this manner for a while then it could be claimed that it is an implied term of your employment that if you do it, single room accommodation is provided. There's no hard and fast rule about this, but if it has been custom and practice for, say 2 years, that would typically be enough.
I would approach your employer in a straightforward way along the lines of 'look, I don't smoke and I don't live in a dormitory at home, and you are now expecting me to change the way we have been working for x years to this. My workmates smoke and I am not keen on the smell. Why do we need to change?' Expect an answer that is perhaps something to do with costs.
If that doesn't immediately get you a result, you could try the implied term tack. Something along the lines 'well we've been doing it this way for x years, doesn't that sound like that it has become an implied term of my contract? That should fox them / send them scurrying back to the legal advisors.
At the end of the day, if a company really wants to effect a change and is determined enough, it can do so by giving notice of the change and tell you in writing that it is doing so, but this doesn't sound like a huge deal in terms of savings for them. It is probably a try-on; not untypical in these times.
Do you get a pay uplift for working away or just out of pocket expenses / allowance?