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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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Sitting proudly on the harbourfront since the 17th century, one of Dartmouth’s grandest buildings is undergoing its most ambitious renovation in over a century.

 

The sympathetic renovation project of the Grade II* listed Royal Castle, which will see its rich history brought back to life, began earlier this year. In the process some interesting historical quirks and features have been uncovered and restored with great care.

 

Owners St Austell Brewery brought the Royal Castle into its award-winning 45-strong managed estate in 2019 and are preparing to unveil the renovation this autumn which honours the building’s past whilst elevating it for the 21st century.

 

As part of the discovery, beautiful 17th century window frames and cobbled stone floors have been found and preserved as part of the pub’s new look. Every era has left a trace on the building, and the fresh design of the pub celebrates them all.


Alongside St Austell Brewery’s experienced property team, a group of designers, engineers and conservation specialists continue to work closely with Historic England and the Local Planning Authority to ensure all works are scrutinised and completed with great care and attention.

 

When the pub is reopened, downstairs, guests will find The Dory Lounge – St Austell Brewery’s take on a cosy, local lounge, where guests can drop in for more informal drinks and light bites.

 

For those looking for comfy nooks and open fireplaces, The Ketch bar on the ground floor will deliver. The colour palette will reflect its harbours views, bringing a unique vibrancy and charm. Towards the rear, guests will find a more traditional pub atmosphere, with flexible seating options upholstered in worn leather and an area for sports viewing.

 

Upstairs, The Sloop offers everything from coffees to cocktails, with a classic, sophisticated vibe from breakfast to bedtime, and a private dining room will provide a unique space for special occasions.

 

The pub’s enhanced bar and dining areas will be served by an improved kitchen to provide an increased and more efficient food offering, with the menu championing local suppliers and featuring a catch of the day landed locally.

 

24 overhauled bedrooms, spread across three storeys, have been designed with comfort in mind and make the most of their location in terms of layout and style, featuring a timeless design approach.

 

Inspiration for the materials and interior palette have been taken from the local landscape; soft sandy pinks, deep earthy reds and oceanic green-blues will reflect throughout the building, tying all areas together, but allowing each space to take on its own personality.

 

Following the launch of its new sustainability plan alongside a brand refresh in June, St Austell Brewery has been actively championing waste reduction, reuse, and repurposing in its refurbishments - principles embraced in the recent transformation of its other pubs, such as the Pier House in Charlestown and The Wellington in Boscastle.

 

Andrew Turner, Chief Operating Officer, St Austell Brewery, said:

“This project isn’t just about improving our guests’ experience; it’s about securing the future of this historic site, ensuring the Royal Castle continues to play a pivotal role in Dartmouth’s rich heritage."

“Restoring and investing into buildings with such rich history takes time; we’re doing things right to ensure we deliver modernity, comfort and excitement whilst honouring the building’s past."

 

“Our vision has been to create a pub that feels both luxurious and local. This is more than a refurbishment for the Royal Castle, it’s a revival.”

 

The Royal Castle’s pub team - who are working at other St Austell Brewery pubs during the renovation - will continue to be led by general manager Matthew Mickinley-Booton, who has managed the team for the past three years.


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