Can You Run a Business from a Council House?

Can You Run a Business from a Council House?

Starting a business from home is a smart, low-cost way to get going — but what if your home is a council house? Can you legally run a business from there? The short answer is yes, in many cases you can. The longer answer is:yes, but you’ll need permission, and there are rules to follow. Here’s what that really means in practice.

What Does It Mean to Run a Business from a Council House?

Running a business from a council property means using your home as your business base. That might involve working from a laptop in your front room, turning part of your flat into a beauty treatment space, or using your garden shed to fix bikes. It doesn’t necessarily mean turning your home into a shopfront or opening the doors to customers — although that’s possible too, with the right steps.

Council homes are owned by the local authority, and that means tenants don’t have the same freedoms as homeowners. While you can live in the property, any changes to how it’s used — including running a business — usually need approval.

Do You Need Permission?

Yes. Before you start trading from your council house, you’ll need to ask your local council or housing association for written permission. Most won’t flat-out refuse you — especially for low-impact businesses like online selling, remote work, or freelancing — but they will want to check that your business doesn’t cause disruption, damage, or violate the terms of your tenancy.

If your business involves regular visitors, noise, staff, or deliveries, the council might ask more questions or set certain conditions. And if they think your business could affect other tenants or the residential nature of the area, they might say no — or ask you to make changes to your plan.

The important thing is to ask before you start. If the council finds out you’re running a business without permission, you could be in breach of your tenancy — which could lead to formal warnings or, in extreme cases, eviction.

What About Legal and Tax Requirements?

Even if you have the council’s green light, you still need to handle the legal side of the business. That means registering as self-employed with HMRC, or setting up a limited company if that’s your route. You’ll need to declare your income, pay the right tax, and make sure you’re insured — just like any other business owner.

You may also need to consider whether you need public liability insurance, especially if clients are visiting your home. And if you’re altering your property — say, installing equipment or changing a room’s function — you may need planning permission or building approval, depending on the extent of the changes.

Possible Advantages

Running a business from your council home keeps costs low. There’s no office rent, no commute, and no big startup outlay. It also makes it easier to balance work and life, especially if you’ve got caring responsibilities or a side hustle that you’re growing slowly.

Getting started in a council house is entirely possible — and many people do it successfully. Councils are often supportive of tenants improving their financial situation, as long as it’s done by the book.

Possible Disadvantages

The main issue is red tape. You’re not free to just crack on without asking permission, and that can feel restrictive. There’s also the risk of being refused, especially if your business is noisy, involves lots of foot traffic, or would change the character of the property.

You might also find that insurers, banks, or suppliers ask questions about your trading address. Running a business from a council property isn’t illegal, but it can raise eyebrows if you're not upfront about it or if it causes practical issues — like lack of space or customer access.

In Summary

Yes, you can run a business from a council house in the UK — but you’ll need to ask your landlord (the council or housing association) for permission first. As long as your business is reasonable, respectful, and not disruptive, many councils will say yes. Just make sure you’re upfront, follow the rules, and get any necessary approvals before you launch. That way, you stay on the right side of your tenancy — and the law.