With an increasing number of people working from home, especially since the start of the Coronavirus pandemic, it is important to ensure that any relevant permissions have been obtained. This blog will focus specifically on whether people are allowed to run a business from home.
What permissions are needed for running a business from home?
Online businesses
The various permissions which may need to be sought depend on the type of business being operated from the premises. The most straightforward businesses to run from home are those which only require a phone, computer, and internet connection. Essentially, an online business.
In the case of running an online business from home, the relevant permissions are:
Mortgage provider
Often there will be a clause in mortgage agreements which precludes the use of one’s home as a place of business. In this case, it is important to clarify with the mortgage company exactly what is and is not permitted. For this reason, it is advantageous to have a relevant document which makes things clear.
Additionally, it will be necessary to check the terms of any leasehold agreement.
Landlord
Tenancy agreements often stipulate that tenants are not allowed to run a business from the premises.
It is a good idea to obtain express permission from the landlord (or letting management agent, social housing provider, council, etc) to ensure that working from home will not constitute a breach of the terms of the tenancy agreement.
Employee and client visits
If there are any employees who need to come into your home on a regular basis or frequent visits from clients, it may be more difficult to obtain permission from the mortgage company or landlord. For example, if it is likely to cause any nuisance to neighbours (e.g. with a constant stream of people entering and leaving the premises).
Furthermore, other permits may be required, such as:
Council
Depending on how the property is going to be used, and if any specific licences are required, the local council may need to consider whether to grant the relevant permit or licence.
It might also be a good idea to obtain a Certificate for Lawful Use, under section 191 of the Town and Country Planning Act 1990 (see ‘use classes’ below).
Insurance
Home contents insurance may not cover business equipment, so it may be necessary to get separate business insurance.
Also, if any clients/customers visit the property, it is advisable to obtain public liability insurance (e.g. in case someone injures themselves).
Furthermore, if there are any employees working from the property, an employer’s liability insurance certificate will need to be obtained and displayed. Additionally, it will be necessary to carry out any required health and safety checks.
Converting part of a home into a business property
If any substantial changes need to be made to the property, or the intention is to make part of a residential property into a business property, it will be necessary to gain the relevant planning permission:
Use classes
Where the original purpose of a building is going to be changed (e.g. a garage is being converted into a hair salon), it will normally be necessary to obtain planning permission to change the ‘use class’ of the property (this officially designates what it can be used for).
Alterations
If any major alterations need to be made to a property, such as building an extension to house an office, consent from the local planning office will be required.
Furthermore, it will be important to check the deeds of the property to ensure that there are no restrictive covenants preventing certain types of trade.
Finally, to change part of a property into a retail or hospitality premises, it will normally be necessary to gain all of the above permissions in addition to having to pay business rates.
Good day,
I have just graduated from the uni 2months ago. I intend to go into jewelry business(Gold) and I’m a bit confused on what license I will be needing to enable run an online business legally, using my apartment (room) for display.
Your advice will be appreciated.
Thank you for your kind comment.
Unfortunately as we are not regulated to provide legal advice, we are unable to provide advice on specific scenarios. We would recommend contacting a solicitor for further assistance. Alternatively, you may be able to use these GOV.UK websites to assist you:
https://www.gov.uk/run-business-from-home
https://www.gov.uk/find-licences
Please accept our apologies for any inconvenience caused.
Kind regards,
The QCF Team
My neighbour is using her home to offer Bowen Technique to clients on a regular basis. Her house, along with two others, shares a private gravel drive – the maintenance of which is shared by the three houses (one of which is mine). According to the Title Deeds of the Land Registry, “The Transferee shall not use or permit to be used the Property or any buildings on the Property for the carrying on of any trade or business whatsoever and shall use the same as a single private dwelling house only”.
This has been going on for several years now and a few months ago I did mention the above, to which the reaction was “I didn’t know that”. I Clients are still coming to the house, churning up the drive, and I really don’t know what to do. Could you please advise.
With many thanks.
Thank you for your kind enquiry, Julie.
If the person who is permitting clients to use the private drive is the owner of the property, we would recommend you would need to seek legal advice to enforce a civil action against the owner. Alternatively, if the person is a tenant of the property, we would recommend contacting the management company of the landlord or the landlord directly, if you are aware of who they are.
Given the wording of the title deeds you have cited, it is likely that you would have strong grounds for a civil action in this matter. There is likely to be a reasonable chance that a strongly worded letter from a law firm would be enough for the person to stop using the private drive for their clients, for fear of having to pay damages.
I trust this information is of use to you.
Regards,
The QCF Team
Hope you can help. My neighbour is holding personal excercise classes via Zoom in her front room. We hear every word. Music etc. I asked them to keep the noise down and they stated it was due to covid and it was just in lock down. This has now been lifted but she is still carrying on. Can I do anything please
Thank you for your kind enquiry, Debra. Your first port of call should be to contact your neighbour directly to inform her of the issue. However, should your neighbour not amend her behaviour, you should contact your local council. Follow this link to find out who to contact in your local area: https://www.gov.uk/report-noise-pollution-to-council.
The next port of call should your council be unable to help is environmental health. However, given the scenario you describe, they are unlikely to be able to assist you in this instance, as they will probably conclude the issue affcts too few people. This will also be dependent on when she carries out these exercise classes – if they are during the working day (8am to 6pm), this may be considered ‘reasonable’.
I trust this information is of use to you.
Regards,
Nicholas
Could I ask some advice. My neighbour has started a personal trainer business. She has quite a few people outside exercising with loud music. There are also lots of cars on our road. This occurs around twice a week but am sure it will get more frequent/more people once covid restrictions end. This is causing a nuisance as I hate the noise that comes into my house and also the manoeuvring to avoid all the cars. Is what she is doing illegal? I am sure she has not got permission from the council as surely they would have asked our opinion on this
Thank you for your kind enquiry, Nina.
It may be that what your neighbour is doing is illegal; however, this will be based on the noise levels her exercise classes are producing. We do not believe she is doing anything illegal by holding a training session in a local park, and there is nothing we are aware of you can do about the parked cars – however, you may wish to raise the issue with the local council to see if any local bylaws are being violated.
We would suggest in the first instance that you contact the council in relation to both noise levels and parked cars, citing specific information such as times, numbers of cars, etc, and see what they do.
I hope this information is of use to you.
Regards,
Nicholas
can i give to me the help
Thank you for your kind enquiry.
We would love to help you; however, can you please provide details or background with regards the matter.
Kind regards,
Nicholas