The Small Business, Enterprise and Employment Act 2015
The Small Business, Enterprise and Employment Act 2015 (Commencement No 2 and Transitional Provisions) Regulations 2015 (SI 2015/1689) (“the Regulations”) were made on 15 September 2015 and came into force on 1 October 2015.
One point of interest for those who work in property is the amendments the Regulations make to the Landlord and Tenant Act 1954 (LTA). Section 23 of the LTA sets out which tenancies benefit from security of tenure. Section 23(4) states that a tenancy does not attract security of tenure where business use is in breach of a term of the tenancy unless the Landlord has consented to the breach. Section 35 of the Regulations amends section 23 LTA to provide that, even if the Landlord provides consent, the tenant still does not obtain security of tenure where the business use is solely for the purposes of a “home business”.
This term will be defined in a new section of the LTA 1954 by section 35 of the Regulations. The aim of these changes is to encourage business, by allowing landlords to permit tenants to use their homes as business premises without running the risk of the tenants acquiring security of tenure under the LTA 1954.