The distinction between a licence and a tenancy is important because it determines your rights. If you have a tenancy, you're protected by deposit protection rules, Section 8 eviction procedures, and the Renters' Rights Act. If you have a licence, you're not for the most part.
Some landlords try to label their agreements as "licences" to avoid giving tenants these protections. However, the law looks at the substance of the arrangement, not just the label. If you have exclusive possession of the property and you pay rent, you almost certainly have a tenancy regardless of what the document says.
Genuine licences exist in situations like lodging, where the landlord lives in the property and shares living space, temporary accommodation provided by a local authority, and certain service occupancy arrangements where accommodation is provided as part of a job.
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