0808 164 1111

Why it’s financially beneficial to buy an annexe

As the term suggests, granny annexes have traditionally been used to keep ageing relatives close by, while also giving them independence. In recent years – however, annexes have transformed into a practical, financial and emotional solution, for a more adaptable breed of homeowners.

As the cost of living continues to creep upwards, an annexe could be a lifeline for either a first-time buyer or an older person struggling with health and mobility. If you’re unsure as to why it’s financially beneficial to buy an annexe, you’ll find the answers you’re looking for in our comprehensive guide on the subject…

An Annexe is a Care Home Alternative

While prices vary, the average cost of a residential care home is £704 per week. Those in nursing homes, where a trained nurse is always on-site, can expect to pay more – with an average cost of £888 per week. What’s more, due to an ageing population – and an associated rise in demand, this cost only looks set to increase in years to come.

As a result, the vast majority of 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 in total, act as informal caregivers to older or disabled relatives. In these cases, moving into a granny annexe offers a cost-effective alternative. Not only does this ensure that loved ones are on-hand to offer help as and when it’s needed, they can also do so free-of-charge.

It’s for this reason that our brand ambassador – Tony Blackburn, originally came to 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.”

Tony Blackburn at iHus offices

Here at iHus, we tailor every granny annexe to the needs of our customers – regardless of who they are. We offer a wide range of options to assist those in the later stages of retirement with independent living. From open-layout footprints, to the installation of various aids – such as handrails and wetrooms, we’ll work with you to find a solution that puts off the need for costly care options, for as long as possible.

An Annexe is a First Step on the Property Ladder

Amid record-breaking property prices, soaring mortgage rates and an unstable job market, more and more young people are finding themselves unable to get on the property ladder. In fact, the average UK property price had risen by 10.8% in April when compared to the year prior – effectively eliminating many young people’s hopes of getting a place of their own.

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, there are plenty of other financial benefits to having an annexe constructed too. Even if it was originally built to house a younger family member, it can still be used as a solid financial investment long-term.

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 an additional income. With the ability to claim up to £7,500 a year in tax-free rent through the ‘rent a room’ scheme, the latter is an option well worth considering.

An Annexe is a Good Investment

Aside from benefiting its inhabitants, constructing a garden home is a financially responsible thing to do long-term. Not only does the annexe’s value increase alongside – and in conjunction to, the main property, it also adds value to the property itself. This is due, in large part, 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 the number of buyers and renters searching for the term ‘annexe’.

It’s difficult to say how much value a garden home would add to the value of a given property, as this depends on the quality and scale of the build. It’s estimated, however, that annexes could add up to 20-30% onto its market value, making it a solid investment down the line. Furthermore, it also provides an additional selling-point for buyers, should you seek to sell your home in the future. With their rise in popularity, people are increasingly looking at properties that come with a pre-existing annexe or the room to build one.

It’s Cheaper to Run

With so much uncertainty surrounding future bill payments, those opting for annexed living benefit from the reduced physical cost of running a smaller abode. Not only does its size mean it will require less energy to heat during the winter months, those in annexes also profit by sharing bills with the main house. Through making use of the same power, water and utility lines, both those in the annexe – and those in the main property, see their financial burden reduced.

To further reduce bill payments, those looking to construct an annexe in their garden should consider renewable energy sources. Here at iHus, our expert team are well-versed in solar panel fittings and can add them to our builds with ease, should our clients desire. Providing top-tier installation, not just on solar panels – but all our fixtures and fittings, we’ll create a comfortable space that requires much less energy to burn.

williamson annexe

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

Emotional Costs

Emotional aspects also have a price tag, and its no surprise that annexes are an ever growing trend with the benefits that come in hand with living closer to loved ones. A recent survey found that parents loved having grandparents around to help out with childcare. And parents also 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 lived in multigenerational homes believed they were better off due to it all round.

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

Trust in iHus

Our expert team of annexe professionals have more than ten years of experience – and over 300 bespoke, garden home constructions, under their belt. We’re well-versed in the financial difficulties people are currently facing, which is why we’re always happy to lend some expert advice as to how an annexe could benefit you.

So, get in touch with our friendly team today and discover how we can help create an annexe space that you – or your family, can truly call home.

Recent Articles

Quick Links

Find out more...

Check out our planning permission or your money-back pledge
Built to the highest quality with a huge range of options
Book your viewing of an iHus near you

Send for your free iHus granny annexe brochure

Simply add your details below, click send, and we’ll forward your beautiful brochure.

Recent Projects

1

Esher

This 1 bedroom bespoke Annexe is home to a family from South Africa, their Annexe has enabled them to live in an area that they love close to their beloved family and grandchildren. Find out how th...
A

McCoy

This idyllic annexe is home to Theresa and Austin situated at the bottom of their daughter and son in law’s garden. Having always lived very closely to one another, the family were convinced this w...
Speedwell Annexe

Speedwell

Our customer moved into her Annexe in January and is thoroughly enjoying her lovely new home. She describes her Annexe as 'Warm Sunny Cosy & Comfortable'. Click below to watch an exclusive inte...
Williamson bespoke granny annexe

Jenny Williamson

The Williamsons family moved into their Annexe over 3 years ago. When visiting the family they told us life in their new home exceeded their expectations for many reasons. So much so, they wanted a...

Download our iHus annexe brochure

If you would like to download our annexe brochure please complete the form below. You call also request for a copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?

Download our iHus annexe brochure

If you would like to download our annexe brochure please complete the form below. You call also request for a copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?

Talk to an expert

Whether you’re looking to build a garden annexe, or just have a quick question, get in touch with us today and one of our friendly team will get back to you.

Get in touch with iHus

If you want to speak to one of the team about how Multi-Generational Living can be achieved by building an annexe. Complete the form below.