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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Mar 26, 2024
2 min read

A partnership between Surrey County Council, Metrobus (Go Ahead), West Sussex County Council, Kent County Council and London Gatwick has won a bid for funding to launch a new fleet of 43 hydrogen powered buses.

The Department for Transport has awarded the partnership over £10 million, which combined with £11.6 million from Metrobus (Go Ahead) and almost £3 million from the other partners brings the total for the project to over £24 million.

Matt Furniss, Cabinet Member for Highways, Transport and Economic Growth, said,

“I am delighted that we have been successful in our joint bid to fund 43 new hydrogen powered buses. This is great news for Surrey residents and for everyone else travelling in and out of the three counties."

“This is part of our continued commitment to make our buses greener following previous investment including £32.3m for more ultra-low and zero emission buses and £6.3m for more ultra-low and zero emission community transport minibuses. A further £9m is being invested in bus priority measures to ensure Surrey buses turn up on time, and £1.4m in improving information for passengers at bus stops."

“We also recently launched the Surrey LINK card which gives young people half-price bus travel and expanded our on-demand Surrey Connect bus services to cover areas where there are no fixed bus routes, giving more options to travel by bus for our residents.”

The buses will operate across a wide area of Surrey, Sussex and Kent to connect rural areas with local towns and London Gatwick. Destinations will include Caterham, Dorking, Redhill, Burgess Hill, Crawley, East Grinstead, Haywards Heath, Horsham, Worthing, Brighton, and Tunbridge Wells. When fully operational, it will be one of the biggest fleets of hydrogen powered buses in the country and the only one operating in rural areas.

Nick Hill, Commercial Director, Metrobus said,

“We are delighted to be awarded match funding from the government’s ZEBRA 2 fund for 43 new hydrogen buses making our hydrogen fleet one of the biggest in the country. Our contribution to this project is £11.6 million which we consider to be a critical investment in providing zero emission buses on the Metrobus network for our customers."

“Buses are one of the most sustainable ways to travel. Hydrogen buses release zero emissions at the tailpipe, helping to reduce carbon emissions and create cleaner air for everyone."

“This project is an excellent example of what can be achieved through partnership working by putting the transport needs of local people first.”

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

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