3 Cost of Living Benefits for Young People in Annexes

The sense of shame and laziness often associated with adults living at home has diminished in recent generations; as they face record-breaking property prices; sizable student-loan debts and flatlining wages. Indeed, under-30s are bearing the brunt of the cost of living crisis; and struggling to secure their own properties as a result. With all these increased pressures, alternative housing options are increasingly being sought out; with young people in annexes becoming a popular choice for many.

Far from a recent issue; the number of 20 to 34 year-olds living at home increased by a third between 1998 and 2017 – and has continued to rise since. However – with recent increases in cost of living; young people are now almost equally as likely to live in an annexed space as their elderly relatives. In fact, 25% of pre-existing builds are currently used by the younger generation; while older generations only inhabit slightly more at 27 per cent.

What’s more, it’s an option made all the more poignant by recent comments in parliament. Indeed – in May, Conservative MP Jackie Doyle-Price suggested that the government should incentivise granny annexes; and ensure that young people have greater access to the wealth in their parents homes. As such, here’s three cost of living benefits to housing young people in annexes; and how constructing one could provide considerable financial benefits amid the current cost of living crisis.

1) Young People in Annexes can Save for a Deposit

With record-breaking rises in property prices – and an unstable job market; young adults are increasingly moving back in with their parents while they struggle to get on the property-ladder. Indeed, the average UK property price in April had risen by 10.8% from the same month last year; with the average homeowner experiencing an almost £50,000 increase in property-value over the last two years. As a result – a third of UK households are now multi-generational; with adult children returning from university accounting for two in five of them.

Annexes and garden homes are an increasingly popular choice for young people returning to the family home; offering them a chance for independence while they save for a deposit on a place of their own. As such, it’s no surprise to learn that they’re most common in the south east of England – where cost of living and house prices are at their highest. London properties – in particular, feature a constructed or converted annexe in almost one in ten households; with a further 12% of homeowners planning to develop one soon.

It’s commonly acknowledged that there’s little-to-no interest rate at the Bank of Mum and Dad. However – with parents also experiencing the cost of living pinch; many feel they’re unable to support adult children due to their own increasing financial pressures. Having a one or two-bedroom annexe constructed can provide an alternative living arrangement in these cases; where adult children can live rent-free while saving for a deposit on a house of their own.

2) Young People in Annexes can Live Independently

For young people, returning home after university can feel like a huge step backwards. Not only does it mean losing some much needed privacy; it can also be a major concern that the process will strip them of their independence. In fact, research has shown that adults facing employment issues – and the prospect of moving back in with parents; experience higher levels of depressive symptoms. In these cases, constructing a garden annex could allow them to continue living independently – while saving money in the process.

an annexe kitchen interior

Furthermore – it’s not just young adults that gain from calling an accessory dwelling unit; as parents also benefit from a more divided form of living. Indeed, the prospect of someone returning home can often be daunting for those who’ve found enjoyment in having an empty-nest. When adult children live in a private annexe space – however; parents can relax knowing they won’t be getting taken advantage of – or used as a personal cook, cleaner and laundromat.

3) Other Financial Benefits for Young People in Annexes

There are plenty of other financial benefits to having an annexe constructed; meaning that – even if it’s originally built to house adult children rent-free; it can still be a solid investment long-term. Downsizing to a granny flat has long-been a popular choice for housing elderly relatives; whether it’s due to mobility issues or to avoid expensive care options as their health declines. In these cases, older relatives can choose to live in the annexe themselves; opening up their pre-paid property for use as a grandchild’s first home.

lounge area annexe interior

Alternatively, an annexe could generate a passive income once adult children have a place of their own. Indeed, while they cannot be rented out under a standard shorthold tenancy agreement; taking in a lodger – or renting the space out as a holiday-let, can be financially beneficial. Furthermore, it’s estimated that an annexe could add up to 20-30% onto the market value of a given property; making it a solid investment down-the-line.

iHus – Here to Help

At iHus, we’ve got over ten years experience constructing over 300 garden homes. We understand that circumstances differ; which is why we take pride in creating a space to suit your family’s needs – regardless of who’ll be living in it.

Get in touch with our friendly and devoted team today to find out how we can help create an annexe space for you – or your family; to truly call home.

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    Recent Projects



    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 way of life wasn’t going to end anytime soon, & their wonderful annexe has made this a reality!
    Speedwell Annexe


    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 interview with the owner and watch their Annexe walk through!
    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 another iHus building! Click view to find out more about their story and take a look around their Annexe.

    Wendy Hamm

    In Autumn 2020 Wendy Hamm and her family approached iHus as they were contemplating an annexe build in their back garden to house Wendy’s mother. Wendy’s mother Jane, 82, was living over an hours drive away from the family. Wendy’s day to day responsibilities meant that visits to Jane were a lot less frequent then they would have wished. Read their story here.

    Download Your Free Annexe Brochure

    Simply fill in the form and you will be emailed a link to download our 32 page annexe brochure.

      Simply fill in the form and you will be emailed a link to download our 32 page annexe brochure. Please check your Junk mail if your brochure doesn’t appear in your inbox

      Request A Hard Copy?:

      Download Your Free Annexe Brochure

        Simply fill in the form and you will be emailed a link to download our 32 page annexe brochure. Please check your Junk mail if your brochure doesn’t appear in your inbox

        Request A Hard Copy?:

        Talk to a Consultant

        We know that building an annexe can seem daunting which is why we created our Signature Move process.

        It all starts with a conversation where we want to get to know you better, understand what you need and give you an opportunity to ask any questions you might have.

        To get started complete the form and a member of our team will get in touch to book you an appointment with a consultant…