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



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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  • Nov 28, 2025
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Sustainable hospitality developer Lamington Group has discovered evidence of a Roman road and buildings from the Roman and Anglo-Saxon/ Anglo-Scandinavian periods on the site of room2 York, set to open in 2027.


The discoveries were made following in-depth archaeological investigations alongside the main contractor, Clegg Construction, and On-Site Archaeology.


Artefacts, including pottery, building materials, metal objects, such as coins, and animal bones, were among the considerable number of fascinating finds.


The discoveries have been excavated safely and are currently under further analysis. Once complete, the artefacts will be displayed at the Yorkshire Museum. Following this discovery and excavation, room2 enters the next phase of the project, a transition from early ground work to vertical construction.


Michael Sims, Managing Director of Clegg Construction said:


"Discovering such significant Roman and early medieval remains in the heart of York is a reminder of the city’s remarkable history."

As the main contractor, we are proud to have facilitated the safe and efficient excavations. Collaboration between our site team and the archaeologists was key to achieving this balance, and we are pleased that the discoveries will contribute to a deeper understanding of York’s past for generations to come.”

Robert Godwin, from Lamington Group, said:

“Uncovering traces of York’s Roman and Anglo-Saxon / Anglo-Scandinavian past has strengthened our connection to the city and its layered history. We want room2 York to reflect that heritage and be a space where guests can experience the city’s story through design that’s both rooted in place, while also reflecting our commitments to sustainability and circularity.”

Located inside the city’s historic castle walls, room2 York will offer 116 guest rooms with kitchens, meeting space, a laundry room and a gym.


The property will be designed with a modern take on the city's medieval history, while also reflecting room2’s circular design philosophy through the in-house Circular Design Studio’s products, which are made from room2 coffee, plastic, and cardboard waste. York will also feature a Winnie’s Café and Bar, serving great food that’s fresh, thoughtful, and rooted in sustainability.


The net zero property will be fully electric, targeting BREEAM Excellent certification and aligned with the UK Net Zero Carbon Buildings Standard for operational and embodied carbon.


The development is the latest in a number of projects undertaken in York by Clegg Construction, which is a Midlands and Yorkshire-based construction firm with its headquarters in Nottingham.


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