For a growing number of people starting their own home-based businesses, the garden has become their new office. Dave Howell reports
Many entrepreneurs now running successful small businesses will have been inspired by companies such as Hewlett-Packard, Harley-Davidson and Apple, all of which started life in sheds or garages. Having a dedicated office or workshop space often leads to innovation. Today, these spaces can be bought off the shelf in all shapes and sizes.
According to the Office for National Statistics, there are now over four million people working from home. Of these workers, two-thirds are self-employed and have become what has been dubbed micro-entrepreneurs, who operate their businesses alone or have few employees. With space often at a premium at home, many of these individuals have looked to their gardens for the office or studio space they need.
Working from home is not a new phenomenon. What is new, however, is the ability to run what can be sometimes complex businesses from garden offices. The demand for these spaces has mushroomed over the last decade, to the point where more than a dozen companies exist that can design and erect a wide range of garden offices to suit every business type.
In addition, the regulations that control what can and can’t be built in someone’s back garden have been relaxed. New regulations permit the construction of a free-standing building no more than a maximum of 2.5 metres high and within two metres of a boundary.
This space is usually more than enough to construct a substantial garden office. Nevertheless, if you are in any doubt, consult your local planning office before you begin construction.
Another contentious issue that is often raised when garden offices are discussed is whether they would attract business rates. Generally speaking, garden offices don’t, but in some cases they might.
For instance, if people visit your garden office to purchase goods from you or if you employ people to work in your garden office, you may be required to pay business rates. The best advice is to contact the Valuation Office Agency if you are unsure.
Of the benefits of working from a garden pod, Pippa Akram, a social media consultant, says: “I decided a garden office was ideal for me, as I wanted to have a more professional feel to my business, which had up until then been run from my kitchen table.
“The garden office also enabled me to separate my business from domestic chores and the distractions of modern life. However, working in winter can be hard, especially if you have forgotten to switch on the timer on radiator.”
Once your garden office has been constructed, it’s important you get it fully insured.
Ben Wilson, home insurance spokesperson at gocompare.com, explains: “Your insurer will want to know the type of work you undertake at home. For example, whether it’s clerical work or whether you’re providing a service such as physiotherapy and have regular business visitors.
“As a rule of thumb, clerical work doesn’t make much difference to the cost of your cover because many policies cover administrative duties. However, receiving regular business visitors or storing stock could have a bigger impact on your insurance premium. Some home insurers give you a discount if your home is occupied during the day, so it’s important to shop around to find the cover you need at a good price.”
Sainsbury’s Insurance recently released a study about how Britons are extending their homes. Conservatories are the second most popular residential extension (29 per cent), followed by loft extensions (15 per cent), garage conversions (11 per cent) and the construction of an outbuilding, such as a garden room or home office (five per cent).
Tom Thomson of Sainsbury’s Home Insurance says: “For people who are improving and extending their homes, it’s crucial to advise their home insurance provider. Making revisions to a property, such as adding new rooms, could change the value of the property significantly and failing to report alterations may see people left underinsured or with invalidated insurance policies.”
Dawn Fry, who runs chocolate making workshops from her garden, says her previous home insurance provider told her it didn’t cover homeworkers and that she had seven days to find new home insurance.
“I found that rather stressful,” she says. “In the end, I went with home insurance that was open to homeworking and separate insurance for my shed. You do have to think about the potential of people coming into your home space, if that is the type of business you have, and how you will manage that for you and the whole family.
“Otherwise, I love working from here. It’s wonderful to be at work and only have the length of the garden to negotiate to get there.”
Today it’s possible to design and build any size of home office. Often referred to as studios or lodges, these spaces can be tailor-made to the precise needs of your business. There has also been a rise in popularity for ‘pod’ offices, which offer smaller working spaces where accommodation for a desk and computer is all that’s needed.
With so much choice, identifying your core needs is important. Think about the space you need now, but also how your business might grow in the future. Try and build some additional space into your office, as this will inevitably come in handy.
Will you be sharing the office with someone else? Having discrete working spaces for each person should be thought through carefully. And if you will have employees working with you in your garden office, installing toilet facilities may be essential.
Does a garden office add any value to a property? This is an often-debated question, with estimates of around five per cent being quoted. What is clear is that in certain areas and cities where space is at a premium, any additional rooms that can be used for business are welcome and many people would pay for the privilege of buying a house with a garden office space already in place.
With the amount of garden office providers on the market, there’s a range of options available to suit most budgets. If you’re planning on setting up a home-based business, a garden office could be the best investment you ever make.