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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Jun 26
3 min read

Commercial Solar Specialist, Absolar has installed 144 lightweight solar panels (specifically chosen for the site considering its structural features) across the Auditorium roof of Bexhill-on-Sea’s Grade I listed De La Warr Pavilion on England’s south coast as part of its major transformation project. An Icon For Everyone in partnership with Rother District Council. Creating a system capacity of 77.7kWp meeting approximately 20% of the De La Warr Pavilion's annual electricity demand.

This is the first installation of this specific lightweight panel in the UK. At just 7.2kg/m2, these panels are among the lightest high-performance modules available commercially. This means the De La Warr Pavilion's original steel roof structure, designed by structural engineer Felix Samuely, can carry the full array while preserving load-bearing capacity for future auditorium equipment and upgrades. Critically, the lightweight specification does not come at the cost of performance. The panels carry industry-leading efficiency ratings, generation output, and manufacturer warranties.

The solar panels are paired with the latest solar GoodWe inverters, selected for seamless integration with the De La Warr Pavilion's existing electrical infrastructure and to provide compatibility for future battery storage, which would increase the building's energy self-reliance further.

The impact this will have includes:

71,570 kWh generated per year, meeting approximately 20% of the De La Warr Pavilion's annual electricity demand
18 tonnes of CO2 saved annually, equivalent to the stage lighting for around 715 productions (based on a 50kW/hour west end lighting rig)

Stewart Drew, CEO and Director, De La Warr Pavilion says:

“As we celebrate the 90th year of the De La Warr Pavilion, I couldn’t be prouder to see these solar panels being installed. It’s a milestone moment, and one that reflects our ongoing dedication to environmental sustainability, strengthening the long-term resilience of the building and reducing its operational impact on the environment."

"These super-lightweight panels are the first of their kind to be installed in the UK and have been carefully chosen to be sympathetic to the existing roof, preserving the integrity of this Grade I listed modernist landmark.”

Councillor Kathryn Field, portfolio holder for environment at Rother District Council says:

“We are delighted that the solar panels are being installed at the De La Warr Pavilion. This funding has enabled a major investment in environmental sustainability which will greatly reduce the Pavilion’s carbon footprint."

“We’re currently promoting information on our website that provides advice on how we can all help in the face of a climate emergency. This solar panel installation is a great example of the commitment of all the partners to support protection of our local environment.”

Dr Phil Wu, CEO of Absolar comments:

"It’s been a real honour to be part of this project as the De La Warr Pavilion is such a community asset, steeped in history and loved by the people of Bexhill. We were determined to find a solution that protects and preserves it for the next 90 years and beyond."

“As a listed building used daily by artists and the wider community, we approached this as much as an art project as an engineering one. Absolar chose modern solar panels, which are lightweight yet don’t compromise on performance. This means we fully respect the building's original structure while securing its energy future. We're proud to be part of its journey helping make it both structurally sound and environmentally ready for the next century."

The solar panels funded by Rother District Council’s Community Infrastructure Levy (CIL) Climate Emergency Bonus Fund and is part of De La Warr Pavilion’s transformation project, An Icon For Everyone that will redevelop this pioneering centre for the arts, creating new learning and community spaces, refurbish the auditorium and galleries, improve accessibility, support environmental sustainability and secure the Pavilion’s purpose as a creative and cultural home for all.

Top Photo: De La Warr Pavilion. Photo by Burst Photos

2nd photo: Councillor Kathryn Field, Dr Phil Wu, Stewart Drew,

Cllr Doug Oliver

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

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