Folk/Traditional music of the British Isles is one form of 'home-made music' - there are plenty of others. I would make a distinction between music that you make for yourself (with friends or alone) and music that you passively consume. American popular music evolved out of various regional folk traditions. British popular music is based primarily upon American imports (sorry if I generalize, but this seems clear to me). So, in the UK, this sort of discussion takes different directions that it would in the US (or some other country). A better title for this thread would have been 'Does English Folk Music Exist?" - the way you frame your question determines how it can be answered. You do realize that there's a world beyond your little island(s), don't you?