In the past landlords were always advised to say ‘no’ to any tenants who wanted to run a business from their rented property.

However, since 2015, sections 35 and 36 of the  Small Business, Enterprise and Employment Act 2015 has provided for the concept of a ‘home business’ – which will not put the landlord at risk of their tenancy falling under the business legislation (which was the main reason why permission was previously refused).

Under the Unfair Terms rules which are now part of the Consumer Rights Act 2015 it is generally accepted that when prohibiting something which, if there was no clause prohibiting it, tenants would be able to do, the landlord must provide for the tenant to be able to request permission to do the prohibited thing.  This clause should include wording providing that the request will not be refused unreasonably.

Since the law changed in 2015, it may now be considered unreasonable to refuse permission for a valid ‘home business’. 

The legislation is not particularly helpful when saying what a home business is, describing it in s35(4)(4) as ‘a business of a kind which might reasonably be carried on at home‘. 

This is generally taken to mean something which is non-intrusive and does not impact on neighbours – such as a translation or copywriting service.  It should also be something that does not affect the planning status of the property.

However, if your business is a home business which has no negative impact on the property or the neighbours, and is not in breach of planning, it may be considered unreasonable to refuse permission.

Unless perhaps tenants’ home businesses are prohibited by the terms of the landlord’s insurance or mortgage deed. Although even here, this is a problem that can be overcome.  Indeed if the mortgage company and/or insurance company are contacted and given information about the proposed business they may well be minded to agree to it.

So if your landlord is refusing permission, try discussing it further with him and maybe provide a document setting out details of the proposed business for him to send to his insurers/mortgage company to see if they would be minded to agree to it.  

Note that if the landlord agrees, he will be entitled to charge a fee of £50 which is allowable when amending the terms of the tenancy agreement.  It is possible that he may also want to increase the rent, for example, to cover any extra insurance premiums or increased mortgage payments he may have to pay.