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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Jul 10, 2025
2 min read

A British aerospace business has confirmed two major deals that it shook on at the recent Paris Air Show.

Flitetec has now signed a distribution agreement with Sliding Systems, a global leader in high-performance telescopic slides and linear motion solutions. It has also become an authorised distributor of Ancra International products across the UK and Europe.

Ancra is a world leader in cargo loading systems and aerospace components, trusted by original equipment manufacturers and conversion programmes globally. Both deals will add to the growing turnover of the long-established company that is eying rapid expansion and increased staffing levels.

Headquartered in Amersham, Bucks, Flitetec operates in 100 countries and provides an aerospace distribution service as well as designing, manufacturing and repairing aircraft interior products.

Managing Director Trevor Lea said:

“The Paris Air Show was a huge success for us, with two major deals signed and plenty of leads generated. I had a great meeting with Steve Moon, Operations Director of Sliding Systems, and we shook on a deal then. It will allow us to expand our distributed product portfolio across the UK and Europe, offering engineered solutions tailored to the aerospace, defence and transportation sectors."

“The agreement reinforces our ongoing commitment to align with trusted partners that share a focus on quality and technical excellence. It marks a milestone for both companies; Sliding Systems’ reputation for durability and engineering excellence is a natural fit with Flitetec’s mission to deliver complete, integrated solutions to our customers."

“Our other deal was signed with Ancra International, to become an authorised distributor of their products across the UK and Europe. This partnership significantly strengthens our distribution product portfolio, underlining our continued growth and strategic expansion in aircraft components."

“Ancra’s reputation for innovation and reliability is second to none. The deal allows us to offer our customers even greater access to high-quality, proven solutions in cargo loading and aircraft interior components. It’s an exciting step forward for Flitetec as we continue to grow our presence across the UK and Europe.”

Photo: Steve Moon, operations director of Sliding Systems, with Trevor Lea, managing director of Flitetec

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

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