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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Aug 5, 2025
2 min read

New research from health, safety and environmental training provider Astutis reveals a strong shift towards environmental responsibility from British organisations.

The “Voice of Our Learners Report 2025”, which includes survey responses from 920 workers, reveals that 7 in 10 organisations are now working towards a net-zero carbon target.

Furthermore, a huge 9 in 10 organisations have said that they have implemented changes this year to reduce environmental impact and carbon footprint.

When it comes to individuals at these organisations, nearly everyone (98%) reports being personally aware of how their work affects the environment.

One of the top challenges revealed when it comes to compliance is keeping up with the persistent environmental regulations, according to 4 in 10 people (40%).

Nearly a third of participants say that their company has a focus on mental health and wellbeing within the ESG landscape.

The survey also shows the growing need for training and support as companies accelerate their net-zero journeys.

Many businesses face challenges not only in meeting compliance but also in embedding sustainability into workplace culture and operations.

There is a growing demand for courses in environmental management and emissions reduction which reflects the ever-growing need.

Steve Terry, Managing Director of Astutis, comments on the research from this year’s Learner Report:

"Fostering environmental awareness isn’t just about policies - it’s about people. By engaging employees through education and practical changes, companies can build a sustainable culture that benefits both the business and the planet."

"Investing in environmental training helps companies show their commitment to sustainability by building employees' knowledge on reducing waste, lowering carbon emissions, and promoting sustainable practices."

"By educating employees on environmental standards, businesses foster trust and loyalty, empowering staff to support and communicate the company’s green initiatives."

With environmental expectations rising and regulatory scrutiny tightening, Astutis’ report highlights a business landscape where net-zero is no longer a nice-to-have and instead a huge priority.

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

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