Business minister Matthew Hancock has taken a swipe at a landlord’s right to stop a tenant running a business from private rented homes.
In an effort to encourage more entrepreneurs to start small businesses based at home, he is bringing in a new law that stops the need for a landlord to give permission for a tenant to start trading.
The details of the new law are sketchy, but will include a boiler plate clause for assured shorthold tenancy agreements that the minister insists will not ‘undermine the rights of a landlord’.
He revealed official figures that show entrepreneurs base at least one business at one in 10 homes.
That adds up to 3 million businesses generating around more than £300 million for the economy.
Other measures to support entrepreneurs working from home include scrapping the need to apply for planning permission to set up and exempting them from business rates except in a small number of cases.
Hancock said: “There’s never been a better time to start a business, and even more people are choosing to start up from home.
“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 know that starting up any business can also be hugely stressful and that’s why today I am announcing that the government will change the law to make life easier for Britain’s home businesses. 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.”