As technology continues to break down the old ways of working, more and more businesses are encouraging their employees to work from home. The Government is equally enthusiastic and is looking to support the move with new legislation.
Most residential leases restrict the property to being used only as a private dwelling and many freehold titles contain similar restrictions on business use.
There are usually express restrictions contained within residential leases preventing a tenant from using the property for commercial purposes. As a result, most occupiers of a residential block of flats will be in breach of their lease or tenancy agreement if they work from home.
A new concept of ‘home businesses’ has been introduced to protect those working from home from falling foul of the Landlord and Tenant Act. This allows ‘home businesses’ to be carried on from a residential dwelling as long at the tenancy relates to a home, is let as a separate dwelling to an individual tenant or tenants and is occupied as a home. Brought in by the Small Business, Enterprise and Employment Act 2015, these measures are now in force.