This is the question being asked by many landlords at the moment as the new HMO (Houses in Multiple Occupancy) regulations come into force. 

There has been a great deal of confusion around this subject, with many landlords believing that everyone has to be licensed, whatever the type of property.  Well, the good news is no, as you only need a licence if any of your properties are classified as an HMO.

And what constitutes an HMO, do you ask?  According to the ODPM (Office of the Deputy Prime Minister), an HMO is a property that has three or more floors and five or more tenants belonging to two or more households. 

So, in reality this relates to bedsits and student houses, and the government says that the key driver for the new regulations is raising the standard of properties in this sector. 

However, there is still some confusion on the exact interpretation of the rules with both landlords and letting agents. For example, what is a household?  The understanding is that the regulations define a household as any tenants who are members of the same family living together, including couples, (whether or not they are married), relatives and their children.  It is important to note that a group of friends sharing a house will not count as a single household. 

If you are interested in finding out more about this complex area, talk to your letting agent or visit the government website on www.propertylicence.gov.uk.  If you are still in doubt you should seek legal advice.