Is a granny annexe worth it?

Is a granny annexe cheaper than a care home?

One of the biggest reasons families choose an annexe is the rising cost of care. Residential care in England now averages around £67,600 a year for self-funders, rising to almost £79,000 a year for nursing care (Which?, 2026).

Unlike ongoing care home fees, a granny annexe is a one-off investment in a permanent addition to your property, giving a loved one their own independent living space while keeping family close. Depending on your annexe and the level of support needed, the initial outlay can be comparable to less than two years of residential care fees. For a relative who can live independently with a little support, that can mean significant long-term savings, alongside the reassurance of having family nearby.

Does a granny annexe add value to your home?

Yes. A well-built annexe is a genuine asset. Self-contained annexes are relatively rare and in demand, which can make a property more attractive, and more valuable, when the time comes to sell. We’ve written more about the value an annexe adds to your home and your family. So while the initial figure is substantial on paper, the value it adds tends to outweigh it many times over.

The benefits beyond the money

The numbers are only part of the story. For many families the real value is simply having loved ones nearby: an elderly parent who keeps their independence with help close at hand, or an adult child who can live affordably and privately while saving for a place of their own. An annexe is also a blank canvas. Unlike the rest of your home, it can be designed from scratch around the person who’ll live in it, and it can change purpose over the years as your family’s needs do.

What does a granny annexe cost?

Every build is different, so the price depends on size, layout, roof style, kitchen and bathroom finish, and the utility connections involved. Those are the choices that move the figure as you settle on your specification. For current prices and a full breakdown, see our guide to how much a self-contained granny annexe costs.

Running costs and upkeep

Once the annexe is yours, the ongoing costs are modest: the usual utilities, council tax (often at a reduced rate, or free), and general maintenance. Because an annexe is a new, smaller building than your main home, the day-to-day running costs are considerably lower than those of a full-sized property.

A turnkey solution

At iHus we have a core range of granny annexes to suit most budgets, from a cosy one-bedroom Bawtry to a spacious two-bedroom Hatfield, or a completely custom build. Once you’ve chosen your model, the finishing touches are yours: be as lavish as you like, or keep to our standard features, which will still wow you, your friends and your family. From discovery and design to the day you move in and put your feet up with a cup of tea, we handle the lot.

Contact our team

Get in touch with the iHus team, download our brochure to see the full range, and book a consultation. Be prepared to be amazed by what’s possible.