I seem to have resolved...
In regards to the Design; Preamble:
We were able to replicate the issues In particular the white space at the bottom of the screen and the screen shifted upwards as to obscure some of the GUI.
We did some thorough testing and contacted several other developers.
We were only able to replicate this issue on Simulated devices and not real devices. On real iPhone devices this issue is not present so it would not affect end users.
We were able to fix this issue on both iPhone and iPad simulators. The cause of this issue is not an app / xcode coding issue as such but rather an issue with the simulators in particular the keyboard or keyboard settings. For some reason when testing the app on the simulators if you type using the hardware (Mac) keyboard it will cause the virtual keyboard to become hidden and thus it is not possible to return the screen to the normal position.
We found solutions in these help sites:
I had been into a weird problem, As every other thing is working fine. All of sudden when I compile my application and got this problem, when I tapped on the UITextField white space is popping up, ...
stackoverflow.com
The keyboard does not show up when I run the simulator and click in the UITextView. How do I re-enable the keyboard? It used to work but now it doesn't - I don't know what I might have clicked by
stackoverflow.com
So if the anyone elsel has this issue its an issue with your simulator and what you need to do is click on the simulator and;
Simulator -> Hardware -> Keyboard -> Toggle Software Keyboard should solve this problem
The keyboard will then popup and you can enter the text and then press Return on the keyboard to hide it. Once the keyboard is hidden the screen will shift back down and the white space will be gone. As Already stated end users using real devices (not simulators) will most likely not experience this issue.
To be honest an experienced Apple app reviewer should be aware of this.