Yes I'd say that is one of the clear times that a C2 is warranted. The ceiling should be fire rated plasterboard too in such a case, but that's a building regs issue rather than an electrical regs one.
There are two slightly different issues at work though - one is whether the fire rated lining that has been punctured to install the light has not been degraded, the other is whether the style of lamp could cause damage to the floorboards above if it overheated or caught fire.
I've seen some say that all downstairs downlights should be, even in a normal house, which I'm not so sure about, but when it's a separate dwelling (flat) above it's clearly a potential danger.