Buying an Annex Makes Financial Sense

The average weekly care costs exceed £1,100 per week in the UK and £1,300 per week for those in nursing homes. With residential care demand increasing and an ageing population – it’s unlikely that these costs will go down anytime soon.

As a result, most elderly people prefer to rely on loved ones for support when planning for retirement. In fact, 1 in 8 people in the UK, around 6.5 million, act as informal caregivers to older or disabled relatives. In these cases, moving into a granny annexe offers a cost-effective alternative. This ensures that loved ones are on-hand to offer help as and when needed, and free of charge.

It’s for this reason that our brand ambassador Tony Blackburn, originally contacted iHus. He said: ‘My wife’s Mum is older and we didn’t want to put her into a care home. She wanted to be closer to us. Now, she’s 99 and has carers coming in to help out. From their point of view, everything in the annexe is easy to operate. All in all, it was a win-win situation and the whole process was terrific’.

We offer a wide range of annexe options to assist those in the later stages of retirement with independent living. From open-layout footprints to installing various aids – such as handrails and wetrooms, we’ll work with you to find a solution that removes the need for costly care options for as long as possible.

Aside from benefiting its residents, constructing a garden home is a financially responsible thing to do in the long term. An annexe’s value increases alongside and in conjunction with the main property and adds value to it. This is mainly due to an increased demand for garden construction post-Covid. In fact, in January 2021, Rightmove – the UK’s largest property portal, reported an 89% increase in buyers and renters searching for the term ‘annexe’.

It’s difficult to say how much value a garden home could add to your property’s value, as this depends on the quality and scale of the build. It’s estimated, however, that annexes could add up to 20-30% to the market value of a home, paving the way for a solid investment down the line.

An annexe also provides an additional selling point for future buyers, with many people increasingly looking for properties with a pre-existing annexe or the space to build one.

The latest figures from Rightmove show that their top searched keyword for home seekers is ‘annexe’. Whether for elderly relatives, regular guests or grown children needing their own space, an iHus annexe is a desirable feature in today’s property market.

When your elderly relatives choose to move to an iHus annexe, they can sell their home and release the equity tied to it, something many have already benefited from. The proceeds could cover the cost of their luxury new iHus and leave enough left over to create financial freedom to enjoy life to the full or fund the costs of extra care.

‘Selling my house and living in my annexe, has meant I have been able to release equity from my house to live’

With so much uncertainty surrounding rising bill payments, those opting for annexed living benefit from the reduced cost of running a smaller abode. Annexe living means you’ll need less energy to heat your home during the winter months and get to share your bills with the main house. Using the same power, water and utility lines, those in the annexe and those living in the main property will reduce their financial burden.

To further reduce monthly bill payments, you can also consider renewable energy sources to power your annexe. Here at iHus, our expert team are well-versed in solar panel fittings to annexes and can add them to our builds with ease. Providing professional installation, not just on solar panels – but all our fixtures and fittings, we’ll create a comfortable space that requires less energy use.

With further benefits to be had – such as a reduction or exemption from paying Council Tax, investing in an annexe is a financial no-brainer.

Emotional aspects also have a price tag, and it’s no surprise that annexes are an ever-growing trend with the benefits they offer. A recent survey found that parents loved having grandparents around to help out with childcare. Also, parents appreciated the shared financial responsibility, the help with household chores, and the joy of a closer family bond that came with grandparents living nearby. 4 in 5 respondents who live in multigenerational homes believe they are better off financially and emotionally.

Ultimately, the survey confirmed what we at iHus know too well. 80% of those who responded who already enjoyed living as a wider family unit felt their lives were richer for it.

With house prices soaring, and an unstable job market to contend with, many young people are finding it nearly impossible to get on the property ladder.

As a result, annexes have become an increasingly popular choice for young people returning to the family home, as it offers them a chance to live independently while saving for a deposit. Of course, constructing an annexe has plenty of other financial benefits, too. Even if it was originally built to house a younger family member, it can still be a solid long-term financial investment.

Once the initial occupants have moved on, this space could be used to provide in-home care to ageing relatives or let out to lodgers to generate additional income.