How to Start a Cleaning Business in the UK (The Actual Numbers, Not the Fantasy)

Oct 29, 2025

Or: Why a £60 Billion Industry Has 75,000 Competitors and You Think You'll Be Different

(Disclosure: I own Perkstar, a digital loyalty platform for small businesses. But this article isn't about loyalty programs—it's about the brutal economics of an industry everyone thinks is "easy money.")

Let me start with two numbers that perfectly capture the cleaning industry paradox:

The UK cleaning industry is worth £60 billion annually.

And yet, 40% of cleaning businesses fail—right in line with the standard small business failure rate.

How can an industry be simultaneously massive and brutal? How can there be 75,565 cleaning businesses operating in the UK, employing 1.47 million people (5% of the entire UK workforce), and still have room for you?

The answer: because most people start cleaning businesses for the wrong reasons, with the wrong preparation, and zero understanding of unit economics.

If you're thinking about starting a cleaning business because it's "easy," requires "low startup costs," or because you "need money fast"—stop reading now. You're about to join the 40% who fail.

But if you're approaching this as an actual business—with realistic expectations about margins, customer acquisition, and the daily grind—then let's talk about how to do this properly.

The Brutal Economics Nobody Talks About

The cleaning industry has the lowest barriers to entry of almost any business. And that's not a feature—it's a warning sign.

What low barriers actually mean:

  1. Infinite competition - 75,565 registered cleaning businesses in the UK, plus thousands operating informally

  2. Price compression - When anyone can start, everyone competes on price

  3. Commoditization - One cleaner looks identical to the next, so customers choose on cost

  4. Wage pressure - National Living Wage is £12.21/hour as of April 2025, and it's your largest expense

The startup cost myth:

Marketing materials will tell you that you can start a cleaning business for £100-500. This is technically true and practically useless.

Yes, you can register as self-employed for free, buy some supplies for £100, and start cleaning houses using clients' equipment.

You can also starve doing this.

Realistic startup costs by business type:

Self-employed domestic cleaner (solo):

  • Business registration: Free (sole trader)

  • Basic equipment & supplies: £250-500

  • Public liability insurance: £150-300/year

  • Transport (if you don't have a car): £0-3,000

  • Marketing: £200-500

  • Total: £600-4,300

Small commercial cleaning business (1-3 staff):

  • Business registration: £12 (limited company)

  • Professional equipment: £1,000-3,000

  • Vehicle + signage: £3,000-10,000

  • Insurance (public & employers liability): £500-1,000/year

  • Initial marketing: £1,000-2,000

  • Working capital (3 months): £5,000-10,000

  • Total: £10,500-26,000

Commercial cleaning company (5+ staff):

  • Everything above, multiplied

  • Specialist equipment (carpet cleaners, floor polishers): £5,000-15,000

  • Multiple vehicles: £10,000-30,000

  • Comprehensive insurance: £2,000-5,000/year

  • Total: £25,000-80,000+

The hidden cost: your time.

As a self-employed cleaner working 40 hours/week at £12-15/hour effective rate (after expenses), you're making £24,960-31,200/year. That's barely above minimum wage, and you're running a business with zero benefits, zero sick pay, and zero pension.

This is why smart operators focus on either:

  1. Scaling quickly (hiring staff, winning contracts)

  2. Specializing (high-margin niches like end-of-tenancy, deep cleaning, biohazard)

  3. Building retention (recurring clients who never churn)

Step 1: Choose Your Lane (And Understand the Economics)

The cleaning industry isn't one market—it's several distinct markets with completely different economics.

Domestic/Residential Cleaning

What it is: Cleaning people's homes (weekly, fortnightly, one-off)

Economics:

  • £12-20/hour typical rates

  • Low barriers = high competition = price pressure

  • Clients are price-sensitive and easily switch

  • 17% of UK households use cleaners (growing market)

  • Mostly cash flow, some repeat business

Pros: Easy to start, flexible hours, low equipment needs Cons: Low margins, high churn, you're always looking for new clients

Realistic income: £25,000-35,000/year as self-employed solo operator

Commercial/Office Cleaning

What it is: Cleaning offices, shops, schools, medical facilities

Economics:

  • £10-15/hour typical rates (lower than domestic due to competition)

  • Contracts provide predictable revenue

  • Often require after-hours work (evenings/nights)

  • Larger contracts = need for staff

  • Government buildings = £9.8 billion market but competitive tendering

Pros: Recurring revenue, scalable, less personal than domestic Cons: Thin margins, staff management, contract dependency, payment delays

Realistic income: £30,000-50,000/year solo, £50,000-150,000+ with staff and contracts

Specialist Cleaning Services

What it is: Carpet cleaning, window cleaning, oven cleaning, end-of-tenancy, biohazard, industrial

Economics:

  • £25-50+/hour possible with specialization

  • Requires training, certification, specialist equipment

  • Less competition = higher margins

  • One-off jobs but can build repeat business

Pros: Higher rates, differentiated, less commoditized Cons: Higher startup costs, requires expertise, equipment-intensive

Realistic income: £35,000-60,000+ depending on niche and volume

The decision matrix:

  • Need to start immediately with minimal capital? → Domestic cleaning (but accept low margins)

  • Want recurring revenue and scalability? → Commercial cleaning (but prepare for staff management)

  • Want higher margins and differentiation? → Specialist services (but invest in training and equipment)

Most failed cleaning businesses try to do all three poorly. Pick one and do it exceptionally.

Step 2: Legal Requirements (Don't Skip This)

The UK has minimal licensing requirements for cleaning businesses, which is both good and bad. Good because you can start quickly. Bad because so can 75,000 competitors.

Mandatory requirements:

Business registration:

  • Sole trader: Free, register with HMRC for Self Assessment

  • Limited company: £12 at Companies House online

Insurance (non-negotiable):

  • Public liability insurance: £150-500/year (covers damage to client property or injury)

  • Employers' liability insurance: Required by law if you have staff (£300-1,000/year)

  • Vehicle insurance: Business use coverage (£400-1,200/year)

Optional but smart:

  • Professional indemnity insurance (if giving advice)

  • Equipment insurance (if you invest heavily in machinery)

DBS checks:

  • Not legally required but often expected for domestic cleaning

  • Standard DBS: £23-48 per check

  • Many clients won't hire without one

Health & Safety training:

  • Not mandatory but strongly recommended

  • COSHH (Control of Substances Hazardous to Health) training

  • Manual handling training

  • First aid certification

Environmental permits:

  • Required if disposing of certain types of waste

  • Check with local council

Total legal/insurance setup cost: £500-2,000 depending on structure

Step 3: Equipment—Buy What You Need, Not What You Want

This is where aspiring cleaning business owners hemorrhage money on equipment they don't need.

For domestic cleaning (starting solo):

Essentials (£250-400):

  • Quality vacuum cleaner (£80-150)

  • Mop, bucket, cloths, dusters (£50-80)

  • All-purpose cleaners, bathroom, kitchen products (£30-50)

  • Protective gloves, apron (£20-30)

  • Caddy/storage (£20-40)

  • Professional-grade supplies (not supermarket brands)

Don't buy yet:

  • Steam cleaners (£150-500) - only if clients request

  • Carpet cleaners (£200-1,000) - niche service

  • Window cleaning equipment (£100-300) - separate specialization

  • Van with signage (£5,000+) - use your car initially

For commercial cleaning:

Add:

  • Industrial vacuum (£300-1,000)

  • Floor buffer/polisher (£200-800)

  • Wet floor signs (£20-50)

  • Commercial-grade chemicals (£200-500)

  • Cleaning trolley (£100-300)

For specialist services:

Carpet cleaning machine: £500-5,000 Window cleaning water-fed pole system: £500-2,000 Oven cleaning equipment & products: £1,000-3,000

The rule: Start minimal. Add equipment only when you have paying clients requesting specific services.

Step 4: Pricing—Don't Compete on Being the Cheapest

The death trap: Competing on price in a commoditized market with 75,565 competitors.

Typical UK cleaning rates (2025):

Domestic:

  • Standard hourly rate: £12-20/hour

  • London: £15-25/hour

  • End of tenancy: £150-400 (depending on property size)

  • Deep clean: £200-500

Commercial:

  • Office cleaning: £10-18/hour

  • Retail: £12-20/hour

  • Medical facilities: £15-25/hour (specialist)

Your pricing strategy should account for:

  1. Your time (not just cleaning—travel, admin, supplies)

  2. Materials cost (10-15% of revenue typically)

  3. Transport (fuel, vehicle wear)

  4. Insurance (annual cost divided by expected jobs)

  5. Profit margin (20-30% target)

  6. Tax (Income tax + National Insurance)

Example calculation (domestic cleaner):

Target £40,000/year income Work 48 weeks/year, 30 billable hours/week = 1,440 billable hours/year

£40,000 + £6,000 expenses + £8,000 tax = £54,000 needed £54,000 / 1,440 hours = £37.50/hour minimum billing rate

If market rate is £15-20/hour, the math doesn't work as a solo operator.

This is why you must either:

  1. Specialize in higher-margin services

  2. Build efficiency (multiple clients in same area)

  3. Scale with staff

  4. Focus on retention to reduce acquisition costs

Step 5: Customer Acquisition—The Part That Actually Matters

Here's the uncomfortable truth: 80% of cleaning business owners are terrible at marketing.

They think "good service" and "word of mouth" will build a business. It won't. Not fast enough to survive.

Customer acquisition cost (CAC) reality:

  • Local advertising: £200-500/month (Facebook, Google, local papers)

  • Expected conversion: 2-5% of impressions

  • Cost per lead: £20-50

  • Conversion to customer: 20-40%

  • CAC: £50-250 per customer

If a customer is worth £500/year (domestic) or £5,000/year (commercial contract), that CAC is either devastating or manageable depending on retention.

What actually works in 2025:

Google Business Profile (free, mandatory):

  • 90% of people search "cleaners near me"

  • Photos, reviews, hours, booking link

  • Respond to every review

  • Update weekly

Local SEO:

  • Simple website (£200-500 one-time)

  • Optimized for "cleaning services [your area]"

  • Case studies, before/after photos

  • Contact form, phone number prominent

Social proof:

  • Customer reviews (Google, Facebook, Trustpilot)

  • Before/after photos (with permission)

  • Video testimonials

Direct outreach (commercial):

  • Identify 50 local businesses

  • Email or call decision-makers

  • Offer free trial or first clean discount

  • Follow up persistently

Partnerships:

  • Estate agents (end of tenancy referrals)

  • Property management companies

  • Offices, gyms, shops in your area

Local advertising:

  • Facebook ads targeting local homeowners (£5-10/day)

  • Leaflet drops (expensive, 0.5-2% conversion)

  • Community boards, local groups

Budget £500-1,000/month for marketing in Year 1. If you're not spending on customer acquisition, you're hoping, not marketing.

Step 6: Build Retention From Day One (Or Die Slowly)

Here's where most cleaning businesses completely fail: they don't think about retention until it's too late.

The data is unforgiving:

  • Acquiring a new cleaning client costs 5-7x more than retaining an existing one

  • Repeat clients are 60-70% of revenue for successful cleaning businesses

  • Customer churn in cleaning averages 30-40% annually without retention systems

Translation: if you lose 40% of customers every year, you're on a treadmill running to stay in place.

What actually drives retention in cleaning businesses:

  1. Consistency - Same cleaner, same quality, same day/time

  2. Communication - Reminders, confirmations, follow-ups

  3. Recognition - Remember preferences, acknowledge loyalty

  4. Value - Reward long-term clients, don't just chase new ones

The tools:

Digital loyalty program:

At Perkstar, we've tracked cleaning businesses. The data is consistent:

  • Loyalty members churn 25-35% less than non-members

  • They're 40% more likely to add additional services

  • Referral rates are 3x higher from loyalty members

Example: "Book 10 cleans, get the 11th at 50% off" or "Refer a friend, both get £20 credit"

Automated communication:

  • Booking confirmations via SMS/email

  • Day-before reminders

  • Post-service follow-up ("How did we do?")

  • Monthly check-ins with irregular clients

Customer management system:

  • Track preferences (products to avoid, pet allergies, keys/access)

  • Note special requests

  • Record issues/complaints

  • Schedule regular services automatically

The math:

Solo cleaner with 40 clients, 30% annual churn:

  • Lose 12 clients/year

  • Need to acquire 12 just to break even

  • At £100 CAC = £1,200/year just replacing churn

Same cleaner with loyalty program, 15% churn:

  • Lose 6 clients/year

  • Acquire 6 to break even

  • At £100 CAC = £600/year

  • Save £600 + grow faster because acquisition budget goes to growth

Retention isn't optional. It's the difference between surviving and thriving.

Step 7: Scale or Specialize (Pick One)

Once you're established (6-12 months), you face a critical decision:

Option A: Scale (hire staff, win contracts)

Economics:

  • Pay cleaners £12.21-15/hour (National Living Wage)

  • Charge clients £15-25/hour

  • Margin: £2.79-10/hour per cleaner

  • Need volume to make meaningful profit

Challenges:

  • Staff recruitment (chronic shortage in UK)

  • Training and quality control

  • Insurance and employment law

  • Cash flow (pay staff before client pays you)

When it works: Commercial contracts, regular clients, efficient routing

Option B: Specialize (niche services, premium pricing)

Economics:

  • Charge £30-60/hour for specialist work

  • Lower volume but higher margins

  • Less staff-dependent

Options:

  • End-of-tenancy cleaning

  • Carpet/upholstery cleaning

  • Oven cleaning (Ovenu franchise: £12,400+VAT)

  • Window cleaning

  • Biohazard/crime scene cleaning

  • Post-construction cleaning

When it works: You enjoy the specialization, invest in training/equipment, build reputation

Most cleaning businesses try to do both and fail at everything. Pick one strategy and execute obsessively.

The Realistic Income Timeline

Let's be honest about what "success" looks like:

Year 1 (solo domestic cleaner):

  • Months 1-3: £500-1,500/month (building client base)

  • Months 4-8: £1,500-2,500/month (established but still growing)

  • Months 9-12: £2,000-3,000/month (20-30 regular clients)

  • Year 1 total: £20,000-30,000

Year 2:

  • Full client roster: £2,500-3,500/month

  • Year 2 total: £30,000-42,000

Year 3 (decision point):

  • Stay solo: £35,000-45,000

  • OR hire first employee: £40,000-60,000 (but more stress)

These are realistic, not aspirational. Checkatrade estimates established cleaning business owners earn £44,251-62,084 on average, but this includes larger operations.

Why Most Fail (And How to Not Be That Statistic)

The top reasons cleaning businesses fail:

  1. Undercapitalization - Start with £500, run out of money in Month 3 before building client base

  2. No marketing budget - Assume word-of-mouth will magically bring clients

  3. Competing only on price - Race to the bottom in a commoditized market

  4. Poor retention - Constant churn means constant (expensive) acquisition

  5. No systems - Everything in your head, can't scale or take a day off

  6. Wrong market - Domestic cleaning in low-income area with no demand

How to avoid failure:

✓ Start with £2,000-5,000 minimum capital (not £100) ✓ Spend £500-1,000/month on marketing in Year 1 ✓ Differentiate on service, reliability, or specialization ✓ Build retention systems from Day 1 (loyalty, CRM, communication) ✓ Document everything (processes, client preferences, schedules) ✓ Choose target market strategically (affluent areas, commercial growth zones)

The Bottom Line (Because You're Probably Exhausted)

Starting a cleaning business in the UK is accessible but not easy.

The £60 billion industry employs 1.47 million people across 75,565 businesses. There's room for you—if you're not delusional about the economics.

Reality check:

  • Startup costs: £600-25,000 (realistically £2,000-5,000 for solo, £10,000-20,000 for commercial)

  • Year 1 income: £20,000-35,000 as solo operator

  • Work: 40-50 hours/week of actual cleaning plus admin

  • Margins: 20-30% if you're efficient

  • Growth: Requires either staff (headaches) or specialization (investment)

This is not a get-rich-quick scheme. It's a real business with real economics.

If you're willing to:

  • Invest proper startup capital

  • Market consistently

  • Build retention systems

  • Provide exceptional service

  • Work your ass off

Then the UK cleaning industry offers genuine opportunity. The demand is real. The market is growing. And unlike restaurants or retail, you're not competing with Amazon or Deliveroo.

But don't mistake low barriers to entry for easy money. 75,565 other businesses thought the same thing. 40% of them failed.

Choose wisely.

Mike

P.S. — If you can't afford £2,000-5,000 to start properly, you can't afford to start at all. Get a job, save money, then launch. Starting undercapitalized is the #1 reason cleaning businesses fail.

P.P.S. — "Good service" and "word of mouth" are not marketing strategies. They're hopes. Hope doesn't pay rent. Customer acquisition systems do. Budget £500/month minimum for marketing or prepare to starve slowly.

P.P.P.S. — Customer retention matters more in cleaning than almost any other business because contracts and relationships drive recurring revenue. If you're not building loyalty from Day 1, you're on an expensive treadmill. Use perkstar.co.uk or any system—just don't rely on memory and hope.

P.P.P.P.S. — The cleaning businesses making £100,000+ are either scaled (staff + contracts) or specialized (premium services). Solo domestic cleaners top out around £35,000-45,000. Know which path you're choosing and commit to it. Trying to do both is how you fail at everything.