Research by the TUC showed that over 4.2 million workers are now based outside an office, which accounts for almost 14% of the UK workforce.
The South East has the most home workers but the biggest rise has been in London - up by over 190,000 - while the South West has the highest percentage at almost one in five.
Home working in Northern Ireland has dropped by 10,000 since 2005, and there has been negligible growth in Wales.
The largest number of home workers is in the information and communications industry.
TUC general secretary, Frances O'Grady, said: "These figures show millions of British workers have adopted home working and are enjoying a better work-life balance, while saving time and money on costly commuting that benefits no-one.
"Although organisations that have embraced home working often say that it has improved retention and productivity, there are still too many employers who are afraid to let their staff try out this way of working. The TUC estimates that there could be as many as another 1.8 million people who would enjoy the benefits of working from home."
The study was published to mark today's National Work from Home Day, organised by Work Wise UK.
The group's chief executive, Phil Flaxton, said: "While there has been a significant increase in regular home working since 2005, clearly more needs to be done to convince some employers that implementing new working practices can result in a win-win situation for both their business and their employees."
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