I live in a semi-detached home in a cul-de-sac, which already has problems with parking.My next-door neighbour has now stuck a garish pink and white 'cake shed' on her drive while I was away for the weekend. This is a wooden stand where she displays cakes she has made. People take them away and leave money in an honesty box. There are now people parking outside my house at all times of day before wandering up her drive to browse the cakes. They are frequently noisy and disruptive. In my view, if she wants to run a shop, she should have a commercial premises, not just lump it on our street. I asked why she didn’t feel the need to mention it to me first, but she was rude and said she could do what she wants on her drive.Is she allowed to run a side business on her driveway like this? Sweet idea? This reader's neighbour has opened up a cake shed on her driveway (stock image)Jane Denton, of This is Money, replies: Cake sheds have caught on recently, popping up on streets and driveways across Britain to tempt passers-by. They are essentially small sheds, filled with home-baked cakes, usually operating via an honesty box system. Setting up a cake shed might look like a quick and simple way to make a bit of extra money, but caution is required. Even though your neighbour's cake shed is a small-scale business, it is still a business. Whether or not a licence will be required will depend on where you live and what your council's rules are. Get in touch with the council and find out what their rules for cake sheds are. A spat about whether people selling cakes from sheds in their gardens should have to pay a local authority £1,007 each for a street trading licence has been dragging on for weeks in Bassetlaw, Nottinghamshire. Your neighbour is selling food, so will need to register as a food business with the local authority at least 28 days before beginning to trade. They will also be required to adhere to food hygiene rules, and allergen information will also need to be provided to customers. Planning permission for a cake shed will not typically be required, though in some cases it could be. If it is a sizeable and permanent structure, then permission is more likely to be needed. If the noise and disruption caused by the cake shed persists, you can complain to the council and get them to decide whether or not it constitutes a statutory nuisance. I asked two solicitors for their thoughts. Olivia Egdell-Page is a partner and head of property at Joseph A. Jones & Co.Olivia Egdell-Page, partner and head of property at Joseph A. Jones & Co., says: Whether your neighbour is allowed to trade from her driveway will depend largely on local council rules, which can vary from one area to another. As a first step, it would be sensible to contact your council and raise your concerns about the business operating from a residential property. In many areas, a street trader’s licence is required only where trading takes place on public land, so would not apply if she is selling from private land with the owner's consent.I don't know whether she owns or rents her home, but if she is renting then running a business may be a breach of her tenancy agreement. If she is selling food, she is likely to need to register the business with the local authority and comply with food hygiene rules. If that has not been done, it is another point you can bring to the council’s attention.The structure itself may also be relevant. If the 'cake shed' is small or temporary, it may fall within permitted development rights. However, if it is more permanent in nature or is being used regularly for commercial purposes, the council’s planning department may need to consider whether planning permission should have been obtained.Beyond licensing, food hygiene and planning, there may also be private legal issues to consider.Many residential properties are subject to restrictive covenants that prohibit business use, require the property to be used for residential purposes only, or prevent anything that causes nuisance or annoyance to neighbouring owners. If similar covenants affect your property, you may be able to argue that they have been breached. It would therefore be worth checking the title documents to see whether any such restrictions apply.If the situation continues and direct discussions with your neighbour do not lead to a resolution, you may ultimately have grounds to pursue a nuisance claim, provided you can show that the interference is both substantial and unreasonable. That said, formal legal action can be costly, so the most practical course is usually to try to resolve matters amicably. Failing that, involve the council promptly to see what steps it can take.Manjinder Atwal, director of housing and property litigation at Duncan Lewis Solicitors, says: Your neighbour cannot simply do whatever she likes because the structure is on her driveway. While many people run businesses from home perfectly lawfully, there are rules designed to protect neighbours from excessive noise, traffic, parking problems and other disruption.The first question is whether the business has become significant enough to amount to change her property from being a building with purely residential use, to mixed residential and commercial use. If so, planning permission may be required. Manjinder Atwal is a director of housing and property litigation at Duncan Lewis SolicitorsFrom what you describe, the issue is not really the cake shed itself but the impact it is having on the neighbourhood. Regular customer visits, inconsiderate parking, increased traffic and noise are all factors that a local authority may take into account when deciding whether a home business has crossed the line.You should keep a diary recording problems such as customer parking, noise, vehicle movements and any disturbance caused. Evidence is far more persuasive than general complaints if the council becomes involved.If the noise or disruption is particularly severe, the council's environmental health team may also be able to investigate whether a statutory nuisance is being caused.Some housing developments prohibit residents from operating businesses from their homes, although enforcing such restrictions can sometimes be complicated.Your neighbour was not legally required to seek your permission before starting a business from home. However, that does not mean she has an unrestricted right to operate in a way that negatively affects those living nearby.Ultimately, whether the cake shed is lawful will depend on its scale and impact. If customers are regularly visiting the property and causing parking and noise problems, it is certainly worth raising the matter with the local authority. The council has powers to investigate and, where appropriate, take enforcement action.Join the discussionShould neighbours be allowed to turn their driveways into businesses even if it disrupts the community?What's your view?Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. 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