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

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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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Dec 4, 2023
2 min read

More than two thousand revelers from across Cornwall and beyond descended on St Austell Brewery for its popular Celtic Beer Festival last weekend.

The day-long festival sees the Victorian cellars of the brewery transformed into a packed venue with five bars featuring more than 100 beers and complete with live music.

A huge £20,000 was raised for charity through the event – which is more than a 50% uplift in fundraising efforts compared to 2019. Despite being four years since the last event owing to the pandemic, the thirst for endless beer and a good sing along with the Fisherman’s Friends was still top priority for those who joined.

Beer from more than 50 breweries was donated to the festival, with all profits from ticket sales going to the St Austell Brewery Charitable Trust, which supports local charities and worthy causes across the South West.

The trust recently celebrated raising a landmark £1 million since it was established in 2003 - previous fundraising events have included a trek to the top of Mount Kilimanjaro, raffles, ale tastings and quizzes, but the annual Celtic Beer Festival remains the trust’s flagship fundraising activity.

Punters queued around the brewery to get into the popular event and grab one of the many thousands of pints pulled throughout the day.

Georgina Young, brewing director at St Austell Brewery said:

“The 22nd Celtic Beer Festival surpassed all our expectations. It was a huge team effort to prepare and run the event and I thank everyone in the company for their support."

“The array of 112 different beers from us and our other brewing friends across the country were really well received. I’m very proud of our brewing teams in St Austell and at Hare Brewery – our second production site in Warmley - who created a wide spread of beers including a cherry Rauchbier, a mango weizen, a mild and a wee heavy! All of which were excellent.”

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

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