New Rules To Boost Home-Based Businesses

Entrepreneurs will have more freedom to begin a business from home under new measures to be announced by the Government.

They include legislation which will make it simpler to run a company from a rented property and new guidance on business rates.

There will also be updates to planning guidance to make it clear that planning permission will not normally be required to run a home-based business.

Business minister Matthew Hancock said: "It's this spirit of personal endeavour and self-determination that is driving our economic recovery.

"But home businesses don't just fire up the economic engines and create jobs, they turn dormitory towns into living communities, they keep our streets safer, and by driving down car emissions, cleaner too.

"We'll give people the confidence they need to run a business from a rented home, making sure that the majority of home businesses are exempt from business rates and our aspiring entrepreneurs have the information they need to start up and grow."

Under the measures a new model tenancy agreement will be made available to landlords.

The law will also be changed so landlords can be confident that agreeing to a business within their property will not undermine their tenancy agreement.

Liz Peace, chief executive of the British Property Federation, said it firmly supported the removal of "unnecessary barriers" to setting up at home.

"At least some of the kitchen table businesses of today will expand and become the commercial property space-seekers of tomorrow," she said.

"We therefore have an interest in ensuring that the law and our sector is adapting to modern business practice and supporting UK entrepreneurs at every stage of their business development."