For too long home based businesses have been regarded as being of no economic significance. This perception is now changing. According to the Department of Business there are now around 70% of new businesses starting off in the home, contributing £300 billion to the economy.
The home is now the most popular place to start and grow a business. One in 10 properties are now home to at least 1 business. This movement towards home based entrepreneurs is primarily a response to the new opportunities afforded by technology with growth being generated by the outsourcing of work to other home based individuals.
The new measures announced by the government this week include:
- new legislation making it easier for people to run a business from a rented home. The law will be changed so that landlords can be assured that agreeing to this will not undermine their residential tenancy agreement. A new model tenancy agreement will also be made available shortly
- updated planning guidance making it clear that planning permission should not normally be needed to run a business from your home
- new business rates guidance clarifying that in the majority of circumstances home-based businesses will not attract business rates
We welcome this encouraging move from the government that will shine a spotlight on this important and growing sector of the economy.