'Barmy' rules that prevent social housing tenants running businesses from their homes look set to be lifted by Hammersmith and Fulham Council.

The news will come as a boon to some of the authority's 17,000 council residents, whose current tenancy agreements prevent them using their home for any form of trade or business

H&F Council says the move will 'unleash a new generation of entrpreneurs in the age of austerity'.

The authority has been backed by Shirley Cupit of the Queen Caroline Estate Tenants and Residents' Association.

She said: "This is a great idea because social housing tenants are often stigmatised as being lazy and portrayed as layabouts. It is very unfair because many people would like to work but their circumstances prevent them from doing so.

"I know people who would love to be able to work from home so this is definitely to be applauded."

Online trading website eBay looks set to benefit from the decision and has also leant its support.

The firm's Jody Ford said: "Since the recession began we've seen more than 25,000 people set up a business on eBay, so there's much truth to the belief that Brits are an entrepreneurial bunch.

"In tough economic times, we encourage anything that helps people to go it alone, so today's announcement from Hammersmith and Fulham Council to allow savvy residents to start a business at home is extremely welcome - good luck to the new businesses, we hope they flourish."

Council leader Stephen Greenhalgh who with his father, Professor Roger Greenhalgh, started their own medical education and publishing company, said: "I started my own business and know how hard you have to work to get it off the ground and keep it viable. We want to sweep away the barmy rules that hinder council tenants.

"Our proposals will set every entrepreneur, from the teenage computer whizz to the grandparent who makes exquisite crafts, free to plot a path to business success from the comfort of their own living room. We could have the next James Dyson or Alan Sugar in our borough but the tiresome red-tape of the past stops many people from ever getting their ideas off the ground.”

The council will start consulting with tenants over the coming months.