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

nuse.

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.

Categories

Jul 1
2 min read

Alex Peal Managing Partner, has announced the appointment of Katy Rabindran as Business Tax Partner, based in our Oxford office.

Katy brings over 20 years of experience advising businesses on their tax affairs, taking an approach that ensures her advice aligns with wider tax strategies. She focuses on delivering practical and relevant guidance. Prior to joining the firm, Katy worked at Grant Thornton UK and BDO UK, where she supported a range of clients across several different sectors.

Katy will play a key role in supporting businesses with their tax planning, advising on how to take advantage of tax reliefs for Research & Development (R&D), patented products and processes, targeted reliefs and more. Her joining reflects the continued growth of our Business Tax offering and strengthens our ability to provide high-quality innovative tax advice to clients.

Commenting on joining the firm, Katy Rabindran, Business Tax Partner, said:

“I'm excited to join the James Cowper Kreston team and to support our clients to achieve their goals. I look forward to working with the Business Tax team and getting to know our clients to bring my experience and perspective to all our relationships."

Phil Snell, Partner and Head of Business Tax at James Cowper Kreston commented:

“Katy is a fantastic addition to our growing team and her expertise as a tax specialist will be instrumental in enhancing the wider Business Tax services we provide to our clients.”

Alex Peal, added: “We are delighted to welcome Katy to the firm. Katy’s appointment is an important step in the continued development of our Business Tax offering and growing team. Her extensive experience and insight will play a key role in supporting our clients and driving the next phase of our growth.”

n.

nuse.

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

nuse.

Most Read

Categories

Most Read

Categories

Recent Posts

Become a digital subscriber and support our publication enabling us to continue to share more news, each and every day.