First find the order of each house from left to right:
The Norwegian lives leftmost, next to the blue house.
The green house is to the left of the white house, which means that the Norwegian cant live in the green/white house
The Brit lives in the red house, so that only leaves the yellow house for the Norwegian.
Since the owner of the center house drinks milk, and the owner of the green house drinks coffee, the green house cannot be the center house.
that leaves 2 houses to the right side of the center house, and green is to the left of white, so the arrangement of the houses is as follows:
Yellow - Blue - Red - Green - White
Now we try to place the Bluemaster smoking beer drinking house owner. The only possibilities are Blue/White houses since we know the Norwegian stays in the yellow house, the Brit stays in the Red House (and drinks milk), and the Green house owner drinks coffee.
Now, if the Bluemaster/beer owner stays in the Blue house, this means that the Blends smoker can only stay in the Green house (since he lives next to a water drinker). And if this is so, then the water drinker stays in the White house leaving only tea for the yellow house, but we know the Dane drinks tea and the yellow house is already occupied by the Norwegian, so therefore the Bluemaster/Beer owner cant stay in the Blue House.
That eliminates 1 of 2 possibilities, so the Bluemaster/beer drinker stays in the White house.
This now means that the Blends smoker can only either stay in the Blue/Red houses. If the Brit is indeed the Blends smoker, then his horse rearing neighbour has to be the water drinker (since the blends smoker lives next to a water drinker, and the green house neighbour already drinks coffee).
This must mean that the Norwegian drinks tea, but hang on, the Dane drinks tea too. So the Brit definitely cannot be a Blends smoker, which means that the Blue house owner smokes Blends.
Because of that, this means that the Norwegian drinks water, and the owner of the blue house is the Dane who drinks tea.
Now we can place the German, who can only stay in the Green/White houses, but since he smokes Prince, and the owner of the White house smokes Bluemaster, the German must be the owner of the Green house, while the Swede is the owner of the last remaining house - White.
This means that the Brit must smoke Pall Mall and rears Birds, the Swede as is said in hints, keeps dogs, and the neighbour of the Blends smoker (Dane) keeps cats.
This leaves the fish for the German.