Kurnal, I thank you I should have read my own advice on my web page but I will have to revise my flow chart and refer to Schedule 14.
Exemptions from the HMO definition.
Certain types of buildings will not be HMO's for the purpose of the Act, other than Part One (HHSRS) and are, therefore, not subject to licensing.
These include,
Buildings, or parts of buildings, occupied by no more than two households each of which comprise a single person, for example two person flat shares.
Managed or owned by a public body, such as the police or the NHS or an LHA or a Registered Social Landlord,
Where the residential accommodation is ancillary to the principal use of the building, for example, religious establishments, conference centres,
Student halls of residence, where the universities are specified as exempt by order,
Buildings regulated otherwise than under the Act, such as care homes, bail hostels, and the description of which are specified in regulations,
Buildings entirely occupied by freeholders or long leaseholders. (But note the problem of mixed occupancy properties.)
For more details check out Schedule 14 of the Housing Act 2004.