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

Feb 12
2 min read

Property finance lender MSP Capital has welcomed industry expert Ben Arnold as Director of Property Services, the latest move in a £750 million loan book strategy.

Ben brings more than 25 years’ experience across residential and commercial property, valuation, development land and planning throughout the south of England. After qualifying as a chartered surveyor in 2005, he joined Savills, progressing to the role of Development Director and head of its south coast valuation team, advising on residential-led development and valuation projects.

In 2017, he took up the role of Land and Planning Director at Hampshire and Dorset housebuilder Pennyfarthing Homes. During eight years there, Ben was responsible for the acquisition and promotion of more than 3,000 strategic land plots. He secured planning approvals for 1,885 new homes, including 650 affordable dwellings, and led the delivery of UK’s first strategic phosphate mitigation scheme.

On his move to MSP Capital, Ben said:

“I’ll be utilising my past experiences in a range of property roles to lead and support the team and our customers to help deliver their projects to a successful conclusion.”

Welcoming Ben, MSP Capital’s CEO Leigh Bartlett said:

“A highly experienced property professional, Ben brings extensive knowledge in development, planning and valuation. His skills and insight will help strengthen our relationship-led lending and the benefits we bring to our clients through robust, flexible lending solutions.”

Ben’s appointment follows MSP Capital’s launch of a package of lower rates on both development and bridging loans enabled by a landmark £350 million in new funding lines.

The facility, involving investment partners J.P. Morgan and Pollen Street Capital, is designed to strengthen scope for a loan book worth £750 million or more over the next five years.

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.