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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Jan 22, 2025
2 min read

A 70-metre lifting crane, almost as tall as York Minster, appears on the city's skyline as Nestlé installs new £5.2m cranes at its Haxby Road distribution centre. The investment highlights Nestlé’s commitment to improving efficiency and modernising its facilities as the company celebrates the 40th anniversary of its York Distribution Centre site this year.

The investment will focus on replacing six high-bay stacker cranes and their control systems in the automated warehouse. This upgrade will not only enhance the warehouse’s reliability and longevity but also improve technology and overall efficiency, all while ensuring a safer work environment by reducing the need for employees to work at heights.

This ambitious project will be executed in three phases between January and July 2025, to maintain uninterrupted service in the company’s 32,500-pallet warehouse throughout the process.

The work will be carried out with Nestlé’s logistics partner, Alstef Group, and will involve the temporary assembly of telescopic cranes on site, with a total of seven lifting crane visits. The lifting crane will reach a height of 70 metres to replace six 25-metre cranes through the warehouse roof, all whilst keeping the operation running.

The company is also upgrading the electrical and control systems in the warehouse to ensure seamless operation. These improvements will make it easier for its team to monitor operations and respond quickly to any issues that may arise.

Richard Hastings, Head of Logistics at Nestlé UK and Ireland, said:

“Nestlé York is a cornerstone of our operations in the UK, playing a vital role in our supply chain and our commitment to delivering high-quality products to consumers."

“This investment in our York Distribution Centre reflects our dedication to continued improvement and innovation and we look forward to sharing more updates as we progress with this exciting project.”

Nestlé UK and Ireland has invested more than £800 million in its UK factories over the past decade, including recent upgrades in Wisbech, York, Halifax and Buxton.

Nestlé’s investment in the York Distribution Centre builds on more than £85 million investment in the Nestlé York campus in the past decade, including refurbished office space and factory machinery upgrades.

The York Distribution Centre was opened in 1985 and supplies retailers in the North of England with a wide range of Nestlé products, including confectionery, coffee and cereals.

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

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