Houses in Multiple Occupation (HMOs) licences will be needed for all properties of three storeys or more, and for all properties with five or more people forming at least two households.
The new law, which comes into effect 6 April 2006, gives three definitions of a multi-occupied property:
One which is occupied by more than one household and in which more than one household shares an amenity (or the building lacks an amenity) such as a bathroom, toilet or cooking facilities
One which is occupied by more than one household and which is a converted building that does not entirely comprise self-contained flats (whether or not there is also a sharing or lack of amenities)
One which is comprised entirely of converted self-contained flats and the standard of conversion does not meet, at a minimum, that required by the 1991 Building Regulation and more than one-third of the flats are occupied under short tenancies.
There are some exemptions - for instance, buildings occupied by a resident landlord with up to two tenants.
Local authorities will also have discretion to bring in their own additional licensing rules for these properties.