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Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom



Britain's entrepreneurs are increasingly choosing to run businesses from home as rising commercial costs, greater flexibility and changing attitudes towards work reshape the country's small business landscape.


New research from Dunster House, garden building specialists, found that almost half (46%) of home business owners now rely on their venture as their primary source of income, while a further 28% say it provides a significant financial contribution to their household finances.


The findings suggest that home businesses have evolved far beyond side hustles, with many entrepreneurs deliberately building long-term businesses from spare bedrooms, garages, garden rooms, and other home workspaces.


When asked what motivated them to start a home-based business, respondents overwhelmingly cited lifestyle benefits over financial necessity, with nearly half saying that a better work-life balance was their top motivator.


Why are Brits choosing to run businesses from home?


Motivation

% of respondents

Better work-life balance

47%

Wanted to work remotely or from home

36%

Wanted more flexibility

36%

Turned a hobby or passion into a business

32%

Wanted to leave their job

31%

Wanted to spend more time with family

29%

Started a side hustle to earn additional income

22%

Renting commercial space was too expensive

14%

COVID-19 prompted a change in direction

12%


Although the data shows that quality-of-life factors dominate, cost remains an important consideration. Commercial property rents in the UK have risen by an average of 3.1% annually as of mid-2026, according to the Carter Jonas Commercial Market Outlook and with this rise, many entrepreneurs are choosing to invest in their own properties rather than commit to expensive premises.


Christopher Murphy MBE, founder of Dunster House, said:

"For many entrepreneurs, running a business from home removes one of the biggest barriers to getting started, the cost of commercial premises. As rents and operating costs continue to rise, more people are realising they don't need a high street unit or office lease to build a successful business. Home working has made entrepreneurship more accessible, allowing people to invest in growing their business rather than covering overheads."

55% regularly work evenings and weekends as home businesses blur work-life boundaries


Despite the flexibility and freedom, there are some payoffs that are being experienced by those who do business out of their home. Many entrepreneurs admit that separating work and home life can be difficult.


More than half (55%) say they regularly work evenings and weekends, while almost half (48%) have experienced loneliness or isolation because of running a business from home.


Meanwhile, one in three (33%) have had customers unexpectedly turn up at their home, highlighting the difficulties many face in maintaining professional boundaries. The findings also reveal the growing pressure that businesses can place on domestic spaces, with 58% saying their enterprise has taken over parts of their personal living environment.


To address these challenges, many entrepreneurs are investing heavily in dedicated workspaces. Nearly two-thirds (62%) have already spent money improving their workspace, with respondents investing an average of £5,170 into creating environments better suited to running a business.


When asked what improvements they would make if budget were no obstacle, better broadband and Wi-Fi (34%), improved heating and air conditioning (34%), and a fully insulated garden office (32%) topped the list.

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One of Birmingham’s leading independent opticians has announced it is opening a third store in Knowle.


Banks Opticians, which is run by Paul Banks and Sarah Morgan, is investing nearly £200,000 into transforming the old Indigo Art Gallery on the high street into a welcoming, state-of-the-art optical showroom.


The brother and sister management team has transformed the old building, installing a new air conditioning and heating system and creating a consulting room, spacious waiting area and dispensing zone.


They have also added in a bar that will serve teas, a range of coffees and something a little more exotic - all geared towards making the customer experience as relaxed and enjoyable as possible.


“We have always admired the vibrancy of Knowle High Street, so when the opportunity came up to take over the art gallery, we jumped at the chance,” explained Sarah, whose father David Banks started the business over 50 years ago."

“The idea is to deliver luxury eyewear in a boutique-style opticians that prides itself on providing personalised service and the very best clinical care. That’s the approach we have employed at our Acocks Green and Sparkhill branches and one we believe will really appeal to local people."

“Refurbishment work is going really well, and the external branding should be completed shortly – this means we’ll be opening the first week in April.”


Banks Opticians, which was named as the UK’s practice of the year in 2022 by Optical Success Academy and optical retailer of the year 2024, stocks designer frames along with independent, niche brands that have been hand-picked from around the world and can’t be found in other high street stores.


Being a family run business since 1973, the company thrives in delivering a personalised service, getting to know people and treating everyone as an individual and not just a number.


Qualified opticians will guide individuals through the journey of eye examination and choosing glasses, with the emphasis on making it a relaxing and fun experience.


Paul, who took over the reins with Sarah in 2005, went on to add:

“We believe every face is unique, and that eyewear can make people feel amazing and enhance their confidence to suit their personality."

“What we’re trying to create in Knowle is a place which ‘wows’ when a client enters, from the level of care you receive, the welcome atmosphere at the bar and the latest equipment, including our OCT machine that is leading the way in how eye conditions are diagnosed and managed."


“The excitement for the opening is building and we’ve already recruited three professionals to our newly formed team. There’s a real desire to be a fixture on the high street for years to come and we’ll be looking at how we can get involved in supporting local events and boosting footfall in the town.”


To mark the opening of the new branch, Banks Opticians is running a competition to win a pair of designer glasses every year until 2030. There are no restrictions to what you choose, and details on how to get involved are currently advertised on the window wrap in Knowle. The lucky winner will be drawn on 9th April.


Above Photo: Knowle Launch (L): (l-r) Paul Banks and Sarah Morgan


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