The amount of people running a business from home has increased substantially over the past few years - according to the ONS, Office for National Statistics there were over 4.2 million people in 2014 working from home: partly due to developments in fast internet and technology, and because people see it as a lifestyle choice.
In the past, people renting would have been hampered by old rental laws - the Landlord and Tenant Act of 1954, which would have meant that landlords would not want tenants working from home, so it is good to see that the Government have addressed this by bringing in a new law, the SBEEA to encourage landlords to allow tenants to run a business from home - with over 2.9 million home businesses in the UK, the government hopes that this will encourage more tenants to start up home businesses.
Previously, landlords have been apprehensive about allowing tenants to run a business from home, as the LTA, Landlord and Tenant Act 1954 allowed tenants who were running a business from a property the rights to stay on in their rental property even after their lease had expired.
The SBEEA creates a statuary definition of Œhome business.¹ A tenant running a home business is excluded from the LTA. A home business is defined broadly, and in a rather circular manner, under the Act as 'a business of a kind which might reasonably be carried on at home'. It is intended that regulations will follow which will clarify the precise scope of the definition. For the time being a business involving the supply of alcohol cannot be classified as a home business.
Landlords and tenants should also be aware that running a business from home also has to meet existing planning and environmental regulations. Also covenants maybe in place be superior landlords which would restrict tenants from running a business from home.
To find out more please speak to your Property Manager or call 01279 713150.