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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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  • Apr 9, 2025
  • 2 min read


  • Sainsbury’s is the first supermarket to partner with Royal Mail to support its rapid expansion of parcel points in convenient locations.

  • Royal Mail will roll out parcel lockers at Sainsbury’s supermarkets across the UK, as part of a long-term partnership.

  • First lockers are already live in Clapham, Desborough, Kempshott, Low Hall, Kidderminster and Chislehurst – with fast expansion planned over the coming months.


Royal Mail and Sainsbury’s have announced a long-term partnership introducing parcel lockers at Sainsbury’s stores across the UK. Sainsbury’s is the first supermarket chain to partner with Royal Mail on its rapidly expanding network of parcel drop-off and collection points.


Royal Mail launched its parcel locker network back in December to meet surging demand for convenient parcel drop-off and collection points and to cater for the growing number of second-hand marketplace sellers.


Royal Mail's lockers, which can already be found in six Sainsbury’s stores across the country with more rolling out soon, offer a hassle-free parcel drop-off service, and soon they will include convenient collection options. With prices starting from just £1.55 online for a small parcel that fits through the letterbox, Royal Mail offers the most affordable rates in the market.


The smart lockers also feature label printing, making the process even more convenient. Customers simply need to pay for postage online and print the label by scanning a QR code at the locker or request a QR code if they are returning a purchase.


The partnership is part of Royal Mail’s widely expanding network of lockers and other drop off and collection points. There are now more than 1,500 lockers and 7,000 Collect+ stores that Royal Mail customers can use, and they can also drop off parcels small enough to fit in any postbox, and use the app to request proof of postage.


Jack Clarkson, Group Strategy and Transformation Director at Royal Mail, said:

“Partnering with a retailer with the scale and popularity of Sainsbury’s is great news for our customers and the UK public, who will now have even more ways to drop off and collect their parcels in convenient locations."

“Due to the relentless growth in online shopping and second-hand marketplaces, there is increased demand from our customers for more parcel drop off and collection points. To meet our goal of making sending and receiving parcels as easy as possible, we must considerably expand our network. This is the start of an exciting partnership with Sainsbury’s that will help us to meet that goal at pace.”


Patrick Dunne, Chief Property and Procurement Officer, Sainsbury’s, said: “A

"Sainsbury’s we’re always looking for innovative ways to deliver the best value, quality and service for our customers. That’s why we're delighted to be partnering with Royal Mail to offer this fantastic new proposition at our stores. The lockers will be available 7 days a week, giving customers an easy, convenient way to drop off and collect parcels via Royal Mail as they shop.”

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