Conservative peer, Earl John Atlee, has recently suggested that tenants should start up businesses from their homes in order to avoid the Bedroom Tax.
The Bedroom Tax was brought in in April 2013 and means that tenants have to pay 14% of their rent for having one 'spare' bedroom and 25% of their rent for having two or more 'spare' bedrooms.
This is, perhaps, a very out of touch suggestion. Many tenants will be prevented from running businesses from their homes under their Tenancy Agreement and would risk facing possession proceedings for breaching the terms of their Tenancy Agreement if they did this. In addition, starting up a business could affect a tenant's eligibility for benefits which may end up leaving them worse off.
There are many rumours circulating regarding the scrapping of the Bedroom Tax and ways to avoid it but, unfortunately, it still remains in place to date. We have seen a huge increase in possession proceedings being brought against tenants as a result of the Bedroom Tax. It is important to seek specialist legal advice if you are struggling to pay the Bedroom Tax and receive a Notice or possession proceedings.
By Kate Hancock, solicitor in the housing law team