Thanks to Olive Hamilton Andrews of Hamiland Ltd for passing on this information that she thought would be useful for Entrepreneur’s club members and Redbridge start-ups via Sophia Hubs blog.
New Home Business Tenancy Agreements
Since 1 October 2015 it has been possible to grant a new type of Assured Shorthold Tenancy (AST) – a Home Business Tenancy (HBT).
So what is a Home Business Tenancy and why has this new category of tenancy been introduced?
What is a Home Business Tenancy?
A Home Business Tenancy is essentially an AST where the tenant is given permission to carry on a home business from the property. The permission can either be blanket (allowing any home business use) or subject to the landlord’s consent for the particular use. No other kind of business use can be permitted.
The Landlord and Tenant Act 1954 has been amended to confirm that such tenancies will not be “business tenancies” and will not therefore attract security of tenure under the 1954 Act. Instead, they will be governed by the legislation applying to residential tenancies