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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Feb 9
2 min read

JCB apprentices have created a unique 80th anniversary project at the company’s World Headquarters that invites the public to tune into its past, present, and future.

The team of 15 young engineering, manufacturing and business apprentices designed the innovative ‘listening bench’ for the grounds of the company’s Rocester factory – giving employees, visitors, and the local community the chance to sit, relax and hear JCB’s story.

The bench, designed in the style of Joseph Cyril Bamford’s first ever product - a tipping trailer made out of wartime scrap - has built-in speakers which play recordings at the push of a button, capturing the company’s remarkable story over the past eight decades.

JCB Chairman Anthony Bamford officially unveiled the listening bench and pressed the button to introduce a recording of his father speaking 30 years ago on the company’s 50th anniversary.

Lord Bamford said:

“It’s a real thrill to unveil this listening bench and I hope people will enjoy sitting here and listening to stories about JCB. What I think is so clever is the way that our apprentices have integrated speakers into the bench and when I pressed the button, who should be speaking but my father, which was very emotional to hear.”

Over ten weeks, a team of engineering, manufacturing, craft, commercial, finance and marketing apprentices were challenged to design and build the bench with a focus on sustainability, using surplus materials from production lines to keep the project as close to carbon neutral as possible.

Project leader and Business Administration Apprentice Lana Hockaday, 21, said:

“This project has really helped us develop a wide range of skills - from communication and teamwork to organisation and problem-solving."

"For many of us, it was our first time taking on something of this scale, so it was a great opportunity to build confidence and experience working across different departments and sites. Seeing it all come together and hearing the finished audio playing from the first bench was an amazing moment.”

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

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