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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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Williams Racing announces that Carlos Sainz will complete the team’s driver line-up for the 2025 FIA Formula 1 World Championship season and beyond.


With a decade of F1 competition under his belt, Sainz will join Williams from Scuderia Ferrari on a two-year agreement with options to extend. In his Formula 1 career to date, the 29-year-old Spaniard has achieved three race victories, 23 podiums, over 1,100 career points and is currently sitting fifth in this season’s Drivers’ Championship. After becoming the only non-Red Bull Racing driver to achieve a race victory in 2023, Sainz most recently took victory at this year’s Australian Grand Prix, just ten days after surgery for appendicitis, and has scored four further podiums so far this season.


Carlos will race alongside Alex Albon for Williams Racing for 2025 and into the new F1 regulations era as the formidable pairing look to spearhead the team’s mission to return to the front of the grid. He will continue to race using number 55.


Williams Racing would also like to thank Logan Sargeant for his hard work and dedication over the past two years. As a graduate of the Williams Driver Academy, Logan became the first US driver to score a point for 30 years when he finished 10th in Austin last year, and has played a fundamental role in developing the team. Williams will give Logan every support as he looks to continue his racing career for 2025 and into the future.


Carlos Sainz commented:

“I am very happy to announce that I will be joining Williams Racing from 2025 onwards. It is no secret that this year’s driver market has been exceptionally complex for various reasons and that it has taken me some time to announce my decision."

"However, I am fully confident that Williams is the right place for me to continue my F1 journey and I am extremely proud of joining such a historic and successful team, where many of my childhood heroes drove in the past and made their mark on our sport. The ultimate goal of bringing Williams back to where it belongs, at the front of the grid, is a challenge that I embrace with excitement and positivity. I am convinced that this team has all the right ingredients to make history again and starting on January 1 I will give my absolute best to drive Williams forward alongside every single member of the team."


“I want to thank James Vowles and the entire Board of Williams for their trust and determination. Their solid leadership and convictions have played an important role in my decision-making. I truly believe that the core of every successful team lies amongst their people and their culture. Williams is synonymous with heritage and pure racing, the foundations of the project that lies ahead of us are very strong and I am really looking forward to being part of it starting next year.”


James Vowles, Team Principal:

"Carlos joining Williams is a strong statement of intent from both parties. Carlos has demonstrated time and again that he is one of the most talented drivers on the grid, with race-winning pedigree, and this underlines the upwards trajectory we are on. Carlos brings not just experience and performance, but also a fierce drive to extract every millisecond out of the team and car; the fit is perfect."

“In Alex and Carlos we will have one of the most formidable driver line-ups on the grid and with huge experience to guide us into the new regulations in 2026. Their belief in this organisation’s mission demonstrates the magnitude of the work going on behind the scenes. People should be in no doubt about our ambition and momentum as we continue our journey back to competitiveness – we are here, we are serious and with Dorilton’s backing we are investing in what it takes to return to the front of the grid.


“I also want to thank Logan for everything he has done for the team and know he will continue to fight hard for us in the races ahead.”

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