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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Oct 20, 2023
2 min read

Thomas Woldbye has officially taken the helm of the UK’s hub airport this morning following the departure of former CEO John Holland-Kaye. As a champion of passenger service, sustainability and growth, Thomas’s arrival opens a new chapter in Heathrow’s story after a decade of transformation.

On his first day, Thomas met colleagues across Heathrow to see first-hand what makes it one of the world’s top airports. As new CEO, Thomas will oversee the airport’s multi-billion pound plans to upgrade existing facilities over the next three years to provide an even better service for passengers, including the next generation security programme and new baggage system for Terminal 2.

As the UK’s hub airport, Heathrow’s success is built on collaborative relationships with local communities, Team Heathrow partners including airlines and ground handlers and stakeholders across sustainability, business and politics. Thomas will spend the coming weeks getting to know these stakeholders and hearing their thoughts on how to further improve the airport.

Heathrow CEO Thomas Woldbye said: “The UK already has a hub airport that is the envy of much of the world. As I spend my first days getting to know the colleagues and Team Heathrow partners who make it a success, I’m looking for how we can make Heathrow even better for our customers and the British economy. It’s humbling to have the opportunity to take on the challenge and I’m excited to get started.”

Thomas succeeds John Holland-Kaye who served as Heathrow’s CEO for over nine years. John set a strong example in his unyielding dedication to his colleagues and left behind a legacy of having transformed Heathrow into a premier global hub, developed the plan for Heathrow expansion that secured overwhelming Parliamentary approval, navigated the business through extremely challenging times during the COVID-19 and enabled Heathrow to recover faster from the pandemic than all of its major EU competitors and took a lead pushing global aviation towards net zero by 2050 in line with the Paris Agreement.

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

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