Using part of my house as a shop

MossStitch

Hi,
I would like to use the hall in my house as a shop. It opens onto the street (there are shops further along and one opposite).
The hall measures 2.25m by 3.25 m out of 189 m squared for whole property.
I want to sell yarn and fabrics so would not have a high volume of bulky deliveries or customers.
I would run it my self. There is time limited on street parking outside and ample car parking in the town car parks.
I have been told by the local council that I would not need to pay business rates (size of space and continued use to access the house).
I have looked at the council's website but am struggling to find info about planning permission.

Any advice gratefully recieved. 

lincroft1710

You will need planning permission

Savvy_Sue

At the risk of stating the obvious, you'll also need to notify your insurer of your plans, and use of the house for storing your stock. You may need to use a broker to obtain suitable insurance, especially as you will have visitors attending the premises. 

If you are a tenant, I believe you also need to notify your landlord - they may have terms which prohibit use of the premises for business. If it is a 'social' landlord then permission to run a business should not be unreasonably withheld. 

If you have a mortgage, you need to check that the terms of your mortgage allow you to run a business from the property. 

I am struggling with the concept of wool and fabric not being 'bulky', but then I still remember the joy of clearing a house where a considerable stash had built up - one room with not much besides wool in it, and all rooms having their own individual stash. It certainly felt 'bulky' at the time. 

user1977

Savvy_Sue said:

If it is a 'social' landlord then permission to run a business should not be unreasonably withheld. 

Although "you don't have planning permission" and "our insurance doesn't cover it" would both be reasonable ground for withholding consent!

And no matter the set-up, title conditions may also prohibit it.

Savvy_Sue

user1977 said:

Savvy_Sue said:

If it is a 'social' landlord then permission to run a business should not be unreasonably withheld. 

Although "you don't have planning permission" and "our insurance doesn't cover it" would both be reasonable ground for withholding consent!

And no matter the set-up, title conditions may also prohibit it.

Those are just two of the reasons why permission might be 'reasonably' withheld, I guess more pointing out that a social landlord can't just say "your tenancy agreement doesn't allow it" (although confusingly the tenancy agreement might have such a clause which they won't necessarily enforce as long as you ask first!)

MyRealNameToo

MossStitch said:

Hi,
I would like to use the hall in my house as a shop. It opens onto the street (there are shops further along and one opposite).
The hall measures 2.25m by 3.25 m out of 189 m squared for whole property.
I want to sell yarn and fabrics so would not have a high volume of bulky deliveries or customers.
I would run it my self. There is time limited on street parking outside and ample car parking in the town car parks.
I have been told by the local council that I would not need to pay business rates (size of space and continued use to access the house).
I have looked at the council's website but am struggling to find info about planning permission.

Any advice gratefully recieved. 

Generally you will need planning permission, there have been some cases where its considered that the commercial activity is so small it doesnt change the fundamental character of the property but doubt a shop being open 5 days a week (or however long it is) will meet that.

I'd clarify the business rates position, I'd expect that it does become liable for business rates however you will be able to apply for and get small business relief from them. It has the same net effect of not paying them but is a process you have to go through and maintain -v- them deciding business rates simply dont apply. 

Insurance will increase considerably and your options for a policy covering both the business and home is going to be limited given the home will have no independent exit 

martindow

I think that the commercial percentage of the house could create a liability for a capital gains bill if you sell your house in the future.

Savvy_Sue

There are rates experts around, but I'm prepared to believe that if the hall remains 'dual use' then rates won't be levied, although I've only seen this considered for a proper room - and if you keep the ironing board or the spare bed in your home office then neither rates nor CGT become a problem.

But with the hall, unless it is the only way in or out, I don't know what you might need to do to 'prove' dual use.

EnPointe

MossStitch said:

Hi,
I would like to use the hall in my house as a shop. It opens onto the street (there are shops further along and one opposite).
The hall measures 2.25m by 3.25 m out of 189 m squared for whole property.
I want to sell yarn and fabrics so would not have a high volume of bulky deliveries or customers.
I would run it my self. There is time limited on street parking outside and ample car parking in the town car parks.
I have been told by the local council that I would not need to pay business rates (size of space and continued use to access the house).
I have looked at the council's website but am struggling to find info about planning permission.

Any advice gratefully recieved. 

You will, require planning permission for a change of use.
You are also extremely  likely to require  the permission of your insurer  and landlord / mortgage  provider.
In addition you will require the requisite public liability  insurance and to ensure that the shop area  meets, where  reasonably practicable, all  relevant fire legislation, Accessibility requirements of the Equality  act  and so on and so forth. 

lincroft1710

Savvy_Sue said:

There are rates experts around, but I'm prepared to believe that if the hall remains 'dual use' then rates won't be levied, although I've only seen this considered for a proper room - and if you keep the ironing board or the spare bed in your home office then neither rates nor CGT become a problem.

But with the hall, unless it is the only way in or out, I don't know what you might need to do to 'prove' dual use.

Very straightforward where it is a room in a house being used as office in daytime and (for example) a music room in the evening. but being used as a shop with possible signage may not be so easy to decide.