Working from home vs coworking? We look at the pros and cons of each way of working to help you decide the best location for your business.
Flexible working is now a normal part of UK working life. Since the pandemic, many small businesses, freelancers and start-ups have moved away from long-term office leases in favour of arrangements that fit around their lives. According to the Office for National Statistics, around 16% of UK workers were fully remote in 2022, while roughly 28% worked in a hybrid pattern. For industries that can accommodate it, the question is no longer whether to offer flexibility, but which blend of home and shared workspace suits you best.
Evolving businesses are finding they have to look beyond traditional private office space and explore more flexible options. But what’s best: collaborative coworking or working from home?
Creative coworking space
Coworking spaces have expanded across the UK as demand for affordable, flexible office space rises. From major cities such as London, Manchester, Birmingham and Bristol to market towns and coastal hubs, you can now find shared workspaces within easy reach of most entrepreneurs.
These are places where several businesses share a premises — or even desks within a single office. They are particularly popular with start-up entrepreneurs, who often like to network and discuss strategies with like-minded individuals. National operators sit alongside independent local hubs, so it is worth comparing what is available in your area.
The business benefit is that coworking spaces are flexible and low-risk. Most offer easy-in, easy-out terms — usually one month’s notice — and are fully serviced, including internet, cleaning and security. Many also provide meeting rooms, event programmes and free tea and coffee.
Coworking can be great for escaping the isolation of working from home. There are colleagues on tap and opportunities for collaboration with other freelancers. You also get a professional business address and a location to meet clients and partners, which can be especially valuable if you do not want to invite people to your home.
On the downside, it can be an expensive solution. Although most spaces offer a variety of options, including part-time, hot-desking and even virtual tenancy, the monthly cost still needs to fit your cash flow. Watch out for noise levels too: while most people are respectful, half a dozen businesses on the phone at the same time can be distracting. Noise-reducing headphones are generally a must.
Working from home
Despite the growth of coworking, homeworking remains extremely popular. ONS data shows that millions of UK workers now do most or all of their work from home, and the figure is even higher among freelancers and the self-employed.
It is not hard to see why. Homeworking is brilliantly flexible for anyone juggling a busy home and work life, there is zero commute, and there is usually a lack of interruption, meaning huge potential for productivity. For employers, it means you are not limited to recruiting within a specific radius, giving you more scope to find the perfect person. It also cuts workforce costs such as office rent, utilities and commuter fees.
Take the rose-tinted glasses off, though, and you will see that it is not always an ideal option. Working from home can be isolating and lonely. Staff may miss the banter with colleagues and the chance to mix with new people. Some also find it blurs the line between work and home, so you slip into the trap of working around the clock. You may also need to factor in higher home energy bills and the cost of a proper desk, chair and lighting.
When it comes to working from home, there are three golden rules:
- Only work in an assigned space; not your bed or your sofa. Go for a desk.
- Vary your surroundings every so often before you start talking to the walls. Try a local café, library or coworking day pass.
- Give yourself a break. It is easy to forget when you do not have a colleague urging you to pop out for lunch. Everyone needs a rest, even those working from home.
As an employer, allowing employees to work remotely takes trust and clear communication. But if you have a team that is motivated, dedicated and willing to go the extra mile, it can be a great idea.
The hybrid middle ground
For many business owners, the answer to the coworking vs homeworking debate is not one or the other — it is both. A hybrid approach lets you use a coworking space for client meetings, networking and collaborative days, while reserving home working for focused, heads-down tasks.
This balance can protect your wellbeing, reduce costs and keep your business looking professional. It also gives you and any employees the autonomy to choose where you work best on any given day.
Which should you choose?
Ultimately, the right workspace depends on your budget, personality, business stage and client needs. If you thrive on company, need a professional address and can afford the membership, coworking could be the boost your business needs. If you prefer quiet, want to keep overheads low and have the discipline to set boundaries, homeworking may suit you better.
So, what do you think? Have you made up your mind about working from home vs coworking? Do you have any experiences you would like to share? Ultimately, it depends on your personal style.
