Depends.
For me personally making a distinction between working area and resting place (home) is very rewarding. I'm much more productive and I get more work done when I'm in a working environment (office) and feel very rewarded when I come back home after work. While on the other hand mixing relaxation and work by working and resting in the same room is not as good for me personally. However I feel more creative working from home, especially in the small hours, this is when the creative magic happens for me
In business terms unless you are in London or some of the other metropolitan cities, I don't think having an office will make much of a difference. From what I've seen most people in the small town are used to having non-formal meetings in a coffe shop or restaurant and rely on Skype conferences and phone talks for doing business. Apart from that, having personal meetings in excess is never good - wasting time over doing the real work.
If I assume properly and you plan to rent an office in Louth, Lincolnshire I personally think this won't make much of a difference as far as exposure and new clients. Morever, I think it will be a waste of money. Unless you are relocating or renting a place in a more populated area.