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 £54,000 a year, and nursing care over £70,000 a year (Which?, 2025), with no asset to show for it at the end. A granny annexe is a one-off investment that keeps that money within the family and leaves you with a permanent addition to your property. At those rates, the cost of an annexe can be recovered within around two years compared with residential care. For a relative who needs support but not full-time nursing, it keeps them comfortable and close for a fraction of the long-term cost.

Does a granny annexe add value to your home?

Yes. A well-built annexe is a genuine asset. These spaces are rare and in demand, and a self-contained annexe can make a property more attractive, and more valuable, when the time comes to sell. We’ve written more about the value of an annexe to your home and to your family. So while the initial outlay is a substantial figure 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 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 also gives you a blank canvas. Unlike the rest of your home, it can be designed from scratch around the person who will 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. As you choose your specification, these are the things that move the figure. 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. There are the usual utilities, council tax (though this is often at a reduced rate, or free), and general maintenance. Because an annexe is a new, smaller building than your main home, these day-to-day costs are considerably lower than running a full-sized property.

A turnkey solution

At iHus we have a core range of granny annexes to suit all budgets, from a cosy one-bedroom Bawtry to a spacious two-bedroom deluxe Hatfield, or a completely custom build. Once you have settled on your model, the finishing touches are yours: be as lavish as you wish, 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 virtual consultation. Be prepared to be amazed by what’s possible.