Encapsulate all transactions within stored procedures, including both the BEGIN TRANSACTION and COMMIT TRANSACTION statements in the procedure. This provides two benefits that help to reduce blocking locks. First, it limits the client application and SQL Server to communications before and after when the transaction runs, thus forcing any messages between them to occur at a time other than when the transaction is running (reducing transaction time). Second, It prevents the user from leaving an open transaction (holding locks open) because the stored procedure forces any transactions that it starts to complete or abort.
Also you can with (rowlock) hints in your update.
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